{
  "id": 7862570,
  "title": "US Fed hikes interest rates to curb inflation in move likely to rile Trump",
  "url": "https://urgent.news/2026/09/16/us-fed-hikes-interest-rates-to-curb-inflation-in-move-likely-to-rile",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T19:15:28.000Z",
  "source": {
    "name": "ABC News AU",
    "slug": "abc-news-au",
    "url": "https://www.abc.net.au/news/2026-09-17/us-fed-raises-interest-rates-to-curb-inflation-trump/107162150"
  },
  "original_language": "en",
  "account": "On Wednesday, the United States Federal Reserve increased interest rates by 25 basis points to combat persistently high inflation. The Federal Open Market Committee, responsible for this decision, unanimously voted to raise the target range to between 3.75 and 4.00 percent, citing elevated inflation and promising a timely return to its 2 percent inflation target. Fed Chair Kevin Warsh stated that the U.S. economy has shown growth since the last meeting, yet inflation trends have remained stagnant.\n\nInflation has been a persistent issue in the U.S., with prices surging due to various factors including Mr. Trump's trade policies, his Iran conflict, and the artificial intelligence boom. Prior to this increase, the Fed had not raised rates since 2023, as the central bank focused on addressing post-pandemic inflation.\n\nSince last July, a quarter of the committee's voting members had opposed the decision to maintain rates, urging an immediate hike as inflation did not show significant improvement. Following the August consumer price index release, which came in at 3.4 percent, unchanged from the previous month but still significantly higher than the Fed's 2 percent target, the Summary of Economic Projections raised its inflation forecast for the Personal Consumption Expenditures price index to 3.7 percent by year-end.\n\nThe Fed's decision to raise rates comes amid international scrutiny, particularly from President Donald Trump, who has demanded lower interest rates to stimulate economic activity. Mr. Trump's administration has been vocal in its criticism of the Fed, including a criminal investigation against its previous chair, Jerome Powell, and efforts to remove Fed Governor Lisa Cook. Despite this, key Trump economic advisor Kevin Hassett acknowledged the necessity of the decision, stating the White House would respect the Fed's judgment. President Trump has largely supported Mr. Warsh, accusing the board of being politically motivated.",
  "summary": "The US economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of Mr Trump's war on Iran, his signature tariff policies and the ongoing AI boom.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections",
        "url": "https://urgent.news/2026/09/16/fed-raises-2026-interest-rate-forecast-to-4-1-lifts-pce-inflation",
        "published": "2026-09-16T18:58:33.000Z"
      },
      {
        "outlet": "The Block",
        "title": "Bitcoin, ether swing after unanimous quarter-point Fed rate hike as Warsh takes aim at inflation",
        "url": "https://urgent.news/2026/09/16/bitcoin-ether-swing-after-unanimous-quarter-point-fed-rate-hike-as",
        "published": "2026-09-16T20:02:16.000Z"
      },
      {
        "outlet": "CBS News",
        "title": "Dow tumbles after Fed raises interest rates for first time since 2023",
        "url": "https://urgent.news/2026/09/16/dow-tumbles-after-fed-raises-interest-rates-for-first-time-since-2023",
        "published": "2026-09-16T20:25:39.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}