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US Federal Reserve Hikes Rates, Sees More Tightening in Search of 'Timelier' Drop in Inflation
Fed policymakers projected one more quarter-point increase this year as inflation stayed elevated and the policy rate was lifted to 3.75%-4.00%.
- On Wednesday, the Federal Reserve raised interest rates to the 3.75%-4.00% range, with new central bank chief Kevin Warsh joining a unanimous decision acknowledging persistent inflation pressures.
- Persistent price pressures forced the hike, driven by President Donald Trump's global import tariffs, an energy shock from the US-Israeli war with Iran, and capital spending from the artificial intelligence boom.
- Policymakers raised inflation estimates to 3.7% per the Personal Consumption Expenditures Price Index, while 16 of 18 officials anticipate at least one more quarter-percentage-point hike by year-end.
- Following the announcement, the benchmark 10-year Treasury yield traded at 4.958% while average 30-year fixed-rate mortgages approach 7%; market bets on an October rate hike rose to 56.5% per CME Group's FedWatch Tool.
- The Fed projects rates rising to the 4.00%-4.25% range by year-end and remaining there through 2027, while inflation is not expected to return to the 2% target until 2029, a year later than previously anticipated.
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Fed raises rates by quarter-point to tame inflation, risking Trump's ire before November election
The Federal Reserve decided Wednesday to raise interest rates for the first time in three years, an attempt to control inflation in a move that defies President Trump's wishes and clashes with his upbeat economic message to midterm voters.
·Washington, United States
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US Federal Reserve hikes rates, sees more tightening in search of 'timelier' drop in inflation
The rate increase was announced less than two months before midterm elections that will determine whether Trump's Republicans retain control of Congress for the final two years of his presidency.
·Jerusalem, Israel
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right4Center1Last UpdatedBias Distribution66% Right
Bias Distribution
- 66% of the sources lean Right
66% Right
L 17%
C 17%
R 66%
Factuality
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