Fed Raises Rates Despite Trump's Pressure

The Federal Reserve recently raised interest rates by a quarter of a percentage point to a range of 3.75 percent to 4 percent, in a move that was unanimous among its policymakers.

This decision was made despite President Trump's public pressure on the Fed to lower rates and address concerns about inflation.

Trump had threatened to cut off trade with other nations if the Fed did not comply with his demands, but the central bank's chairman, Kevin Warsh, demurred from discussing the president's involvement in the decision-making process.

Warsh emphasized that inflation is a major issue that policymakers must address, and that raising rates was necessary to combat it.