Fed Raises Key Interest Rate Amid Inflation Fears

The US Federal Reserve has raised its key interest rate for the first time in three years. This decision is aimed at curbing inflation, a measure that financial markets had anticipated. However, it goes against the wishes of President Donald Trump, who called for a rapid reduction in interest rates.

'Interest rates in the United States should be 1 per cent or less,' Trump wrote on his platform Truth Social. He emphasized that this is because 'we have the strongest creditworthiness in the world.'

Later on Wednesday, Trump again commented on the Fed's decision, stating that Chairman Kevin Warsh is a good guy but has to deal with a hostile council. The president also described the rate cut as a 'political' decision intended to 'harm' him.