Federal Reserve Defies Trump with Interest Rate Hike Despite Economic Growth

The Federal Reserve raised its benchmark interest rate to a range of 3.75% to 4%, marking the first hike since 2023, despite Donald Trump's call for lower borrowing costs.

Newly minted Fed Chair Kevin Warsh and the entire committee voted unanimously to push rates up by a quarter-percentage point, citing stubborn price pressures that refuse to back down.

Inflation has stayed too high for too long, according to Warsh, who noted that recent readings proved underlying price trends weren't improving on their own.

The White House Pushback was swift, with Trump demanding immediate relief and labeling the board as hostile and political, accusing them of trying to damage his agenda ahead of the midterm elections.