The White House called the U.S. Federal Reserve’s (Fed) to raise interest rates by 25 basis points, to a range of 3.75–4%, despite pressure from U.S. President Donald Trump to lower them.
“The Federal Reserve’s (Fed) rather unfortunate decision to raise interest rates today is not, in the administration’s view, based on particularly compelling economic reasoning,” Kush Desai, deputy White House press secretary, told Fox News.
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This is the first time since the summer of 2023 that the Fed has raised interest rates, which determine the cost of borrowing. The decision was unanimous and supported by the new Fed Chair Kevin Warsh, who was selected by Trump last spring with the expectation that he would lower interest rates.
The Fed estimates that another rate hike will be needed by the end of the year to combat inflation, which remains “excessively high,” as Kevin Warsh emphasized in a press conference.
Source: KYPE
