Fed Set to Raise Rates Amid Trump's Borrowing Costs Warning

The US Federal Reserve is poised to raise interest rates today in an effort to combat inflation, despite warnings from President Donald Trump that borrowing costs should fall rather than rise.

Economists argue that the quarter-percentage-point hike is necessary to keep prices under control, particularly with energy price increases threatening to push inflation up further.

ING researchers have suggested that a 50-basis-point increase could be more effective in curbing inflation, but have ruled out this option due to potential political fallout.