US Fed Rate LIVE: Did Kevin Warsh defy Trump? Fed announces 25 bps interest rate hike, signals one more later this year
The US Federal Reserve has raised interest rates by 25 basis points, marking the first increase since 2023, with signals of further hikes to come. Fed Chair Kevin Warsh oversaw the decision despite public pressure from President Trump to lower borrowing costs.
Why it matters
The decision reflects the Fed's attempt to balance economic cooling measures against political pressure and inflationary concerns.
US Fed Rate Highlights: The United States Federal Reserve's hiked interest rates by 25 bps, its first increase since 2023. The central bank's rate setting committee has further indicated that a second hike is likely to come later this year.The Federal Open Market Committee (FOMC) voted unanimously to increase the benchmark federal funds rate to a range of 3.75% to 4%.The two-day meet concluded today, amid high anticipation that the Fed would raise interest rates for the first time in three years. The 12-member committee announced its decision at 11:30 pm IST on 16 September and Fed Chair Kevin Warsh addressed the media at midnight IST on 17 September.Announcement in line with expectationsThe markets had priced a better than 90% chance of a 25-bps hike from the US Fed, Bloomberg reported citing swaps data.
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