Fed Defies Trump, Raises Interest Rates Amid Inflation Fears

The Federal Reserve raised interest rates last week as part of its mission to control inflation. Despite President Donald Trump's demand for lower borrowing costs, the Fed Chair Kevin Warsh and other committee members carried out their plan to manage monetary policy.

According to reports, the key interest rate was raised to 4%, which is a move that is supposed to hurt bond markets. However, on Thursday, the bond market rallied after the announcement, with the 10-year Treasury yield falling by 7 basis points to 4.95 percent.