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Fed approves interest rate hike, signals one more to come this year
Officials said 16 of 18 participants expected another increase, as inflation stayed elevated and Treasury yields and mortgage rates climbed.
- The Federal Reserve raised its benchmark interest rate by a quarter percentage point to roughly 3.9%, marking the central bank's first rate increase in three years.
- Led by Fed Chair Kevin Warsh, the Federal Open Market Committee voted for the hike to tackle stubbornly persistent inflation—driven in part by recent spike in energy costs—and signaled that another increase to 4.1% could follow later this year.
- The decision directly defies public demands from President Donald Trump, who repeatedly called for immediate rate cuts and argued the U.S. should enjoy the "lowest interest rate in the world".
- The rate hike is expected to push borrowing costs higher across the economy, impacting consumer mortgages, credit cards, and auto loans just seven weeks ahead of the November midterm elections.
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Total News Sources4
Leaning Left2Leaning Right0Center2Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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