Fed Hikes Rates Despite Trump's Desires for Lower Interest

President Donald Trump's economic fortunes took a hit on Wednesday as the Federal Reserve hiked interest rates for the first time since 2023. The rate increase, a quarter of a percentage point, brought the target range to between 3.75 percent and four percent.

The move is aimed at combating inflation, which remains elevated. The Fed's decision comes as Americans face higher costs due in part to Trump's war with Iran and tariffs.

Trump has been critical of former Fed Chair Jerome Powell for not lowering the federal funds rate quickly enough, but his hand-picked successor, Kevin Warsh, has taken a different approach. While speaking at the Fed's annual symposium in Jackson Hole, Wyoming, Warsh expressed concern about elevated inflation, saying 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'