Fed Sticks to Plan, Raises Interest Rates Amid Trump Pressure

The Federal Reserve raised interest rates to 4% last week in an effort to control inflation. This move was done despite pressure from President Donald Trump, who has been calling for borrowing costs to be cut.

Fed Chair Kevin Warsh and the other 11 members of the central bank's Federal Open Market Committee carried out their mission as intended, managing monetary policy to control inflation.

The 10-year Treasury yield fell 7 basis points to 4.95 percent after the rate hike, dropping below the 5.04 percent level it touched on Tuesday. This unexpected move in the bond market suggests that investors are adjusting to the new interest rates and are not as concerned about future inflation.

Warsh has done his job by making a decision based on economic data and projections, rather than being swayed by political pressure from Trump.