US Federal Reserve Hikes Interest Rates Amid Inflation Concerns

The US Federal Reserve has raised interest rates for the first time since July 2023. The benchmark rate was lifted by a quarter-percentage point to a range of 3.75% to 4%. This move is part of the Fed's efforts to contain inflation, which remains elevated.

President Donald Trump had called for lower interest rates, saying the US should have the 'LOWEST RATE of any country in the World'. He also threatened to stop trading with countries that have a deficit if the central bank did not lower rates. However, current Fed Chair Kevin Warsh has maintained his independence from the White House and said he would stick to the committee's decision.

New projections show that a majority of officials expect another rate hike before the end of the year, with four officials predicting the benchmark rate will reach a range of 4.25% to 4.5% by year-end.