Fed Raises Rates to Combat Stubborn Inflation

The Federal Reserve raised its main interest rate by a quarter percentage point to a range between 3.75% and 4%, citing stubborn inflation that persists above the central bank's 2% target.

This decision was widely expected, but President Donald Trump criticized it, calling on the Fed to cut the main interest rate regardless of price pressures.

Fed Chair Kevin Warsh defended the decision, saying that the economy is strengthening and policymakers saw a need to increase the main rate given persistent geopolitical turmoil and signs that inflation has not slowed since July.