Why Trump's hand-picked Fed chair defied him by raising interest rates
The US Federal Reserve has raised interest rates to 3.75%-4% in an effort to combat rising inflation. This move was made despite public opposition from President Trump, who criticized the decision as politically motivated.
Why it matters
The tension between the executive branch and the independent Federal Reserve has significant implications for US monetary policy and economic stability.
Why Trump's hand-picked Fed chair defied him by raising interest rates Close US interest rates have been raised for the first time in more than three years to 3.75%-4% from 3.5%-3.75% by the Federal Reserve. Fed Chair Kevin Warsh warned they could be increased further later this year in a bid to slow rising prices.
The increase comes despite fierce opposition from President Donald Trump, who had called for rates to be cut.
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