Federal Reserve is expected to raise its benchmark rate, defying President Trump's demands
- The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023, lifting the rate to about 3.9% in an effort to combat stubbornly-high inflation.
- Fed Chair Kevin Warsh faced mounting pressure from Financial markets after the Iran war lifted July inflation to 3.7%, forcing him to choose between rate increases and President Donald Trump's demands for lower borrowing costs.
- The quarter-point increase lifted the federal funds rate to 3.75%-4%, while the 10-year Treasury reached 5% for the first time in three years, raising costs for Mortgage and auto loans.
- Americans already struggling with high costs for groceries and gas now face rising borrowing expenses, as Affordability has emerged as a central concern just seven weeks before midterm elections.
- The Federal Reserve signaled a second rate hike later this year to 4.1%, while Wall Street investors anticipate additional increases in December and March, shaping borrowing costs ahead.
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305 Articles
Tagesschau
ORF.at NewsIn the fight against persistently high inflation, the US Federal Reserve Fed raises the key interest rate. It was raised by a quarter of a point - to the new range of 3.75 to 4.00 percent. Experts had expected this step.
Dagens Nyheter.
A united US central bank led by new governor Kevin Warsh is defying President Donald Trump and raising the key interest rate by a quarter of a percentage point. It is the first increase since 2023.
The Independent
The Independent (US)Fed defies Trump and hikes key interest rate for first time in 3 years
It's the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates
Federal Reserve hikes key rate for 1st time in 3 years
The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly-high inflation, a move that could spur a sharp response from the White House.
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