Fed Raises Interest Rates for the First Time Since 2023
The increase announced this Wednesday (16) was the first during Trump's second term and under Kevin Warsh's presidency at the Fed.
TL;DR
- The US Federal Reserve increased its key interest rate from 3.5%-3.75% to 3.75%-4%.
- This is the first rate hike since July 2023 and the first under Fed Chair Kevin Warsh, appointed by President Trump.
- President Trump has publicly pressured the Fed to lower interest rates.
- US inflation over 12 months was 3.4% in August, the lowest since March but still considered high.
- Fuel prices have increased significantly due to the conflict in Iran impacting the Strait of Hormuz.
- Trump claimed that global diesel price hikes are mainly due to the Russia-Ukraine war, not the conflict in Iran.