Fed Defies Trump, Raises Interest Rates by Quarter Point

The Federal Reserve has raised interest rates by a quarter point despite pressure from US President Donald Trump to cut them.

The decision was made during the most recent Federal Open Market Committee (FOMC) meeting, which took place on July 29, 2026. This marks the second consecutive meeting where policymakers have kept the interest rate unchanged.

Fed Chair Kevin Warsh spoke at a news conference following the FOMC meetings, but made no comments about the interest rate decision. Trump has been vocal in his calls for lower interest rates, citing their potential benefits to economic growth and employment.