Fed Raises Interest Rate: U.S. Central Bank Stands Firm against Pressure from Trump
Amid overt pressure from U.S. President Donald Trump to cut interest rates, the U.S. Federal Reserve Board has decided to instead raise them in an effort to curb inflation.
The U.S. Federal Reserve has decided to raise its policy interest rate by 0.25 percentage points to a target range of 3.75% to 4%, marking the first increase in three years. President Donald Trump had put pressure on the Fed to cut rates, but the central bank maintained its independence and acted to curb inflation. The Fed expects to raise rates again this year.
Inflation has been running high, with the consumer price index increasing by more than 3% year-over-year for six consecutive months. The Fed's decision comes amid concerns over a "K-shaped economy" and rising global tensions, such as the U.S.-Iran conflict and the deepening Middle East crisis. Financial markets reacted cautiously to the rate hike, and Trump responded on social media, calling for lower interest rates.
The Fed Chair, Kevin Warsh, explained that the decision was based on the high and persistent inflation levels. However, some analysts have raised concerns about the potential market instability due to the lack of detailed explanation.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
