Fed Hikes Rates, Dashing Trump's Hopes for Lower Interest Costs

U.S. President Donald Trump's calls for lower interest rates have been met with disappointment as the Federal Reserve raised its policy rate target range by a quarter of a percentage point to 3.75-4.00 percent, marking the first rise in more than three years.

The Fed's decision has made it almost certain that Trump will not see another rate cut during his presidency, barring an unforeseen catastrophe that forces the Fed to slash rates to zero.

Traders are now pricing in a roughly 50 percent chance that the Fed could raise rates again at its next meeting in October, which would be just before the U.S. midterm elections.