Trump Slams Fed Rate Hike as 'Raise Against Him'

US President Donald Trump responded negatively to the Federal Reserve's decision to raise interest rates by 25 basis points, despite inflation being above target for five years. The move brings the base rate up to 3.75-4%, a quarter-percentage-point increase that goes against Trump's lobbying efforts.

Fed Chairman Kevin Warsh stated that the central bank's rate-setting committee had unanimously agreed on the hike to combat inflation, which has been consistently above the Fed's 2% target since before Trump took office.

Trump countered by saying that he believes the decision was a personal attack and implied that the economy is strong enough to 'barrel through' higher rates. He also suggested that the Federal Open Market Committee (FOMC) members are 'hostile, they're very political,' and made their decision for political reasons.

The move is seen as a necessary step to curb inflation, which has been driven by supply-side shocks in oil markets due to the US-Iranian conflict. The FOMC's priority between keeping inflation at 2% and maximum employment remains clear, with jobs data showing solid growth but inflation remaining above average.