Fed Raises Rates Amid Persistent Inflation Pressures

The Federal Reserve has raised interest rates by a quarter of a percentage point to between 3.75% and 4.00%, citing persistent inflation as a major concern.

The decision, made under new US central bank chief Kevin Warsh, marks a unanimous move that acknowledges the Trump administration's inability to control inflation so far.

The rate hike was necessitated by a combination of factors, including President Donald Trump's global import tariffs and an energy shock following the start of the US-Israeli war with Iran. Additionally, capital spending from the artificial intelligence boom has contributed to price pressures.