US Federal Reserve raises interest rates for the first time since 2023
The US Federal Reserve has raised interest rates by a quarter-percentage point to a range of 3.75% to 4% to combat persistent inflation. Fed Chair Kevin Warsh defended the move, while former President Donald Trump publicly criticized the decision and called for lower rates.
Why it matters
This decision impacts borrowing costs for consumers and businesses and highlights potential friction between the central bank's independence and political pressure.
Kevin Warsh at the Federal Reserve in in Washington in July. Kevin Warsh at the Federal Reserve in in Washington in July. Federal Reserve US Federal Reserve raises interest rates for the first time since 2023 Trump urges lower rates after central bank agrees increase by quarter-percentage point to range of 3.75% to 4%
Prefer the Guardian on Google The US Federal Reserve voted to raise interest rates on Wednesday for the first time since 2023 as the central bank continues to fight to tamp down inflation.
The Fed’s open market committee voted unanimously to raise its benchmark interest rate by a quarter-percentage point to a range of 3.75% to 4%. This is the first time the Fed has raised rates since July 2023 and potentially sets Kevin Warsh, the current Fed chair, on a collision course with Donald Trump.
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