Federal Reserve Hikes Interest Rates Amid Inflation Concerns

The Federal Reserve raised its benchmark interest rate for the first time since 2023 to combat stubbornly high inflation, which could lead to increased borrowing costs for mortgages, auto loans, and credit cards. The quarter-point increase sets the key rate at about 3.9%.

President Trump reacted negatively to the decision, calling it 'very hostile' and implying that the Fed is raising rates to hurt his presidency politically. He expressed confidence in Fed Chairman Kevin Warsh but criticized the board's move as 'the wrong thing'.