Fed Raises Rates Amid 'Too High' Inflation, Trump Protests

The US Federal Reserve raised interest rates for the first time since 2023 on Wednesday, defying President Donald Trump's demand for rate cuts. The Fed's Federal Open Market Committee voted unanimously to increase rates by 25 basis points to between 3.75 and 4.00 percent.

Central bank chief Kevin Warsh stressed that the decision was necessary to combat inflation that has been 'too high' for 'too long.' He added, 'The plain fact is that inflation is too high, and has been for too long.'

The Fed's Summary of Economic Projections (SEP) showed that a vast majority of policymakers believe at least one more rate hike is necessary before the end of the year.