Fed Hikes Interest Rates Amid Persistent Inflation Pressures

The Federal Reserve raised interest rates by a quarter of a percentage point to 3.75%-4.00%, citing persistent inflation despite moderate price pressures.

This move effectively acknowledges the Trump administration's inability to control inflation, particularly with tariffs and an energy shock from the US-Israeli war with Iran contributing to higher prices.

New policy projections show 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, while only two see rates remaining stable.