Fed Defies Trump, Set to Hike Interest Rate Amid Inflation Concerns

The Federal Reserve is expected to raise its benchmark interest rate for the first time in three years on Wednesday, despite President Donald Trump's demands for a cut.

The decision comes as inflation remains stubbornly high, with prices increasing due to the ongoing Iran war and surging investment in AI data centers.

Kevin Warsh, the Fed Chair, has argued that the central bank has not yet achieved its goal of putting inflation in check, and a rate hike is necessary to combat it.

However, some members of the Fed's interest-rate setting committee still expect inflation to fade over time and may not feel a rate hike is necessary.