Fed Raises Rates Amid Inflation Fears and Trump Pressure

The Federal Reserve is expected to raise its short-term interest rate for the first time in three years, despite pressure from President Donald Trump. The move aims to combat stubbornly high inflation.

Federal Reserve Chair Kevin Warsh held a press conference following a two-day policy meeting. He faced questions about the decision, which would put the central bank at odds with Trump's call for a rate cut.

The Fed is widely expected to increase its short-term interest rate by 0.25% to combat inflation. This would be the first rate hike since 2023.