Fed Defies Trump, Raises Interest Rates to Combat Inflation

Fed Chair Kevin Warsh and his team made a crucial move to combat inflation last week by raising interest rates, despite pressure from President Donald Trump.

The Federal Reserve increased the key interest rate to 4% in its first hike since 2023, demonstrating its independence from White House influence.

This decision comes as Trump has been threatening to cut off trade with countries that don't comply with his demands, which would have further complicated monetary policy management.