What to know about US Federal Reserve’s first interest rate hike in 3 years
The unanimous decision comes as prices have remained stubbornly high and despite Trump's demands for lower rates.
For the first time in more than three years, the United States Federal Reserve has raised interest rates amid mounting inflationary pressures and consumer frustration.
The unanimous decision on Wednesday, supported by all 12 members of the Federal Open Market Committee (FOMC), raised rates by a quarter of a percentage point, underscoring the central bank’s commitment to lowering prices.
“The plain fact is that inflation is too high and has been for too long,” US Federal Reserve Chair Kevin Warsh told reporters.
The rate increase also comes at an inopportune time for Trump and the Republican Party, less than 50 days before the November midterm elections that will determine whether Republicans or Democrats control the US Congress.