Fed Hikes Rates Amid Inflation Concerns, Trump Pushes for Lower Interest Rates
US Federal Reserve Chairman Kevin Warsh announced yesterday that the central bank has raised interest rates to a target range of 3.75% to 4%, citing persistent inflation as a major concern.
The decision marks a move in the opposite direction from what US President Donald Trump had urged, who argued on Truth Social that interest rates 'should be 1%, or less' and claimed the country deserved lower rates due to its strong economic performance and 'Best Credit in the World, By far.'
Fed Chair Warsh defended the rate hike, saying that price pressures remain high despite a strengthening economy. He emphasized that bringing inflation under control is essential for achieving the Fed's 2% target, but acknowledged that monetary policy has its limits when individual prices rise due to supply pressures.