Fed Hikes Rates Amid Persistent Inflation Concerns
The Federal Reserve raised its benchmark interest rate by a quarter of a percentage point on Wednesday to address persistent inflation, despite President Donald Trump's promise to lower prices. The decision marked the first policy shift under new Fed chief Kevin Warsh, who took office in late May after being selected by Trump.
The Fed's move reflects its focus on tackling elevated inflation, which has remained high despite moderation from peak levels. New projections showed 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, with only two seeing rates remaining stable from here.
The dollar rose against the euro after the Fed's announcement, while US Treasury bond yields held largely steady. Stocks were mostly higher, with the S&P 500 index up 0.3 percent and the Nasdaq Composite up 0.7 percent.