US Fed Hikes Rates Amid Inflation Fears and Trump Pressure
The US Federal Reserve has announced a quarter-point interest rate hike to combat high inflation. The decision comes after months of pressure from President Donald Trump to lower rates, despite rising fuel prices and other economic indicators pointing to continued growth.
The Fed raised the benchmark interest rate by 25 basis points to 3.75-4%, marking its first increase in over three years. The move is expected to help bring inflation back in line with the central bank's 2% target, but may also slow down economic activity.
Consumer prices jumped 0.4% in August, the highest increase in four months, while benchmark crude oil prices have soared due to tensions between the US and Iran. The average price for a gallon of petrol has reached $4.36, with diesel prices doubling from last year's levels.