Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
- On Wednesday, the Federal Reserve unanimously voted to raise interest rates to between 3.75 and 4.00 per cent, marking the first increase in three years.
- Persistent inflation driven by rising oil prices during the U.S.-Israeli conflict with Iran prompted the action, as officials aimed to support a "timelier return" to their 2 per cent target.
- Fed Chairman Kevin Warsh emphasized that "the plain fact is that inflation is too high and has been for too long," while the Dow Jones Industrial Average tumbled more than 850 points after the announcement.
- Following the announcement, the two-year Treasury yield jumped to 4.73% from 4.67% late Tuesday, while JPMorgan Chase fell 2%, one of the market's heaviest weights.
- Projections published Wednesday show at least 12 of 18 policymakers expect another rate hike before year-end, with the median forecast suggesting the federal funds rate will reach 4.1%.
329 Articles
329 Articles
At his inauguration he had promised that he would keep the Federal Reserve independent of political pressure. Kevin Warsh maintained his commitment and despite US President Donald Trump's continuing appeals at a cut in interest rates, the number one central bank, strongly wanted by tycoon, raised the cost of money. The US central bank decided to raise the rate on federal funds by a quarter of a percentage point bringing it into a range of 3.75% …
Wall Street Rollercoaster: Fed Hikes Interest Rates Amid Global Tensions
Wall Street experienced volatility as the U.S. Fed raised its key interest rate, its first in over three years, to combat high inflation linked to soaring oil prices amid the U.S.-Israeli war against Iran. Market reactions were mixed as investors digested additional geopolitical developments and Fed comments.
'Inflation Is Too High': Fed Chair Kevin Warsh Fires Warning as Rates Jump and Borrowing Costs Rise
The Federal Reserve has raised its benchmark interest rate by a quarter point to 3.75–4%, citing persistent inflation and signalling higher borrowing costs for households and businesses.
The Federal Reserve (Fed) had no longer raised its guiding rates, which have guided borrowing costs since the summer of 2023. They were raised by a quarter of a point to reach a range of 3.75% to 4%. Inflation has been "too high for too long," justifying the president of the monetary institution Kevin Warsh at a press conference. The price increase was still 3.7% over a year in July, according to the PCE index favoured by the Fed, well above its…
Fed chair says inflation 'too high' for 'too long,' with summer readings showing little improvement
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