Stocks Surge as US Fed Defies Trump, Raises Interest Rates to Fight Inflation

US stocks rose on Thursday after the Federal Reserve raised interest rates to combat inflation, despite President Donald Trump's call for lower rates. The Fed lifted borrowing costs for the first time since 2023, defying Trump's demand.

The decision was unanimous and followed by a graph showing that most policymakers expected at least one more hike before the end of the year.

Investors took comfort from the Fed standing firm against Trump's demands, according to Susannah Streeter, chief investment strategist at Wealth Club. The 10-year US Treasury bond yield remained below five percent.