U.S. Federal Reserve Hikes Key Rate for 1st Time in 3 Years, Defying Trump Demands for a Cut
- Today, the Federal Reserve raised interest rates by 0.25 percentage points to a target band of 3.75 to 4 per cent, marking the first hike in three years to combat persistently high inflation.
- Persistent inflation, which reached 3.4 per cent last week, was fueled by the ongoing war with Iran and energy costs, prompting the Federal Open Market Committee to act despite geopolitical uncertainty.
- Economic activity expanded at a "solid pace" while petrol prices surged 3.9 per cent, compounded by drone attacks that closed Saudi Arabia's East-West Pipeline across the Arabian Peninsula.
- President Donald Trump, who recently posted that the Fed must "get smart- BE PATRIOTS for a change," has pressured his handpicked chair Kevin Warsh to cut rates instead.
- JPMorgan chief global strategist David Kelly noted that Warsh would "lose serious credibility" if the committee failed to act, as the hike aims for a "timelier return" to the 2 per cent goal.
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113 Articles
Fed raises interest rates for first time in 3 years, battling persistent inflation • West Virginia Watch
WASHINGTON — The Federal Reserve raised interest rates Wednesday for the first time in three years as inflation continues to dog the economy, largely driven by soaring gas and fuel oil prices while the war in Iran drags on.
The US central bank raised its key interest rate by a quarter of a percentage point due to inflation and indicated that another hike could follow by the end of the year.
Fed Raises Key Rate for First Time in Years
The Federal Reserve has hiked its key interest rate for the first time in more than three years, delivering a quarter-point rise despite President Trump's call for lower rates. The Fed announced Wednesday that its key rate is laughing to a range of 3.75%-4%. The Fed, which is under...
Federal Reserve hikes key interest rate for first time in 3 years, defying Trump’s demand for cut - The Boston Globe
The quarter-point increase lifts the Fed’s key rate to about 3.9 percent and, over time, could result in higher borrowing costs for mortgages, auto loans, and credit cards.
US Federal Reserve raises interest rates for 1st time in 3 years, defying Trump
The Federal Reserve raised interest rates by a quarter point, with Kevin Warsh backing the unanimous move. The decision signalled more tightening ahead as inflation stayed elevated and markets watched for Warsh's next steps.
The US central bank is raising its key interest rate for the first time in over three years. What does this mean for the economy in the US and Sweden? DN's economics reporter Hasse Eriksson answers five questions about the announcement.
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