Fed Raises Interest Rates Despite Trump's Demands for Lower Rates

The U.S. Federal Reserve has raised interest rates for the first time in over three years, contrary to demands from President Donald Trump.

The decision, announced on Wednesday evening at 8:00 p.m. Swiss time, sees the benchmark interest rate increase by 0.25 percentage points to between 3.75 and 4.00 percent.

Fed Chairman Kevin Warsh has stated that higher interest rates are necessary to curb inflation, which remains too high despite persistent price pressures.

This move is expected to make loans more expensive for businesses and households, potentially weighing on the economy.