US Federal Reserve raises rates, defying Trump’s push for cheaper borrowing
The Federal Reserve has lifted its benchmark interest rate by 0.25 percentage points, reportedly its first increase in three years.
The US Federal Reserve has raised its benchmark interest rate by 0.25 percentage points, putting its new chair, Kevin Warsh, at odds with President Donald Trump’s preference for lower borrowing costs.
France 24 International reported that the decision marked the central bank’s first rate increase in three years. The supplied material does not state the benchmark rate’s new level.
The move places monetary policy at the centre of a political tension over the cost of borrowing. Historical material supplied with the report says Trump had reportedly sought an interest rate of 1 per cent or lower.
Consumer banks and bond markets reacted after the decision, according to the source material. Asian currencies also reportedly weakened, although the currencies affected and the size of any movements were not specified.
The rate rise was also associated in supplied reports with high inflation and pressure from elevated oil prices. Those factors, and the broader market effects, have not been independently quantified in the material provided.
