Federal Reserve Rate Hike Reflects New World of Sticky Inflation

President Donald Trump has renewed his attacks on the Federal Reserve after it hiked its benchmark interest rate Wednesday. However, economists say that the Fed matters less than broader economic trends when it comes to longer-term borrowing costs.

The economy is growing steadily despite being hit with repeated shocks, and may even be accelerating, while inflation remains stubbornly high. Big tech firms are borrowing huge amounts of cash to plow into data center construction, contributing to higher inflation.

Chairman Kevin Warsh spoke during a news conference at the Federal Reserve in Washington on Wednesday, addressing the rate hike.