Fed Raises Rates Amid High Inflation Expectations

The US Federal Reserve has raised interest rates by 25 basis points to combat high inflation, a decision that is likely to anger President Donald Trump.

The Fed's Federal Open Market Committee voted unanimously to increase rates to between 3.75 and 4.00 percent, citing 'elevated' inflation and stating that the rate hike would support a 'timelier return' to its two-percent target for inflation.

A majority of Fed policymakers expect at least one more rate hike before the end of the year, according to the central bank's Summary of Economic Projections. The US economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of Trump's war on Iran, his signature tariff policies, and the ongoing AI boom.