Fed Hikes Rates for First Time Since July 2023 Amid Sustained Inflation

The Federal Reserve, led by Chair Kevin Warsh, has raised interest rates for the first time since July 2023. The benchmark rate was increased by 0.25 percentage points to a target range of 3.75% to 4.00%. This decision follows two consecutive readings where inflation ran above the 2% target.

Fed Chair Warsh emphasized that inflation has been consistently high for over five years, making price stability the primary focus. He stated bluntly, 'For more than five years, inflation has been running above target.' The unanimous rate hike was widely expected due to sustained inflationary pressures.

Notably, Trump criticized the Fed's decision but refrained from targeting Warsh personally. Instead, he referred to the Federal Reserve Board as 'a bunch of politicians.'