Fed Raises Interest Rates Amid Inflation Concerns, Despite Ongoing War

The Federal Reserve has made its first interest rate hike since 2023, raising the benchmark rate by a quarter of a percentage point. In a unanimous decision, Fed Chair Kevin Warsh cited inflation as the primary concern.

'Inflation is the problem,' Warsh stated. 'Stable prices have been the problem for now more than five and a half years.' He added that the committee aimed to ensure a timely return to its price stability objective.

President Trump responded negatively, calling the Fed 'very hostile' and 'very political.' He urged the Fed to lower its benchmark interest rate from 4 percent down to 1 percent or even lower.