Fed Spurns Trump's Rate Demands in Bid to Tame Inflation

Despite President Trump's repeated calls for lower interest rates, the Federal Reserve raised its key interest rate by 0.25 percentage points on Wednesday, marking the first increase since 2023.

The decision was made unanimously by all 12 members of the Federal Open Market Committee, including newly appointed Chair Kevin Warsh, who defended the move as a necessary step to combat elevated inflation.

Trump had expressed his displeasure with the Fed's decision on Truth Social, stating that interest rates in the US should be 1% or less because 'we are the Best Credit in the World, BY FAR.'

The rate hike is expected to make borrowing money more expensive for consumers, particularly those who rely on credit cards. However, Warsh argued that lower-income Americans will benefit from stable prices.