Federal Reserve Defies Trump, Raises Interest Rates for First Time in Three Years

The Federal Reserve raised interest rates by a quarter of a point on Wednesday, marking the first increase in three years. The move was made despite pressure from President Donald Trump and his team, who had lobbied for lower rates.

Fed Chairman Kevin Warsh explained that the decision was necessary due to discouraging data on inflation and consumer prices. In fact, a Duke University survey found that nearly all former Fed officials believed a rate hike was needed.

Trump's team had launched a heavy-handed campaign to convince Warsh to leave rates unchanged, but he ultimately made the call the president didn't want. The decision comes just four months after Trump appointed Warsh as chairman.