Federal Reserve Hikes Rates Despite Trump's Calls for Cuts

The Federal Reserve has raised its benchmark interest rate by one-quarter of a percentage point to 3.75% to 4%, despite President Donald Trump's calls for lower borrowing costs.

This is the first increase since 2023, and it was widely anticipated after Fed Chair Kevin Warsh warned that inflation could require higher borrowing costs.

The rate hike came as a result of the Federal Open Market Committee's unanimous decision to raise the target range for the federal funds rate by 1/4 percentage point.

Fed Chair Kevin Warsh stated during a news conference, 'The Committee decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate.'