US Fed raises rates by 0.25pc to battle inflation

The US Federal Reserve on Wednesday raised interest rates for the first time since 2023, defying US President Donald Trump's demand for cuts, as central bank chief Kevin Warsh stressed the need to combat inflation that has been "too high" for "too long." The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent. Warsh, appointed by Trump, said the decision was a "serious" one, but needed to be taken. "The plain fact is that inflation is too high, and has been for too long," he told a press conference. Wednesday's rate hike may not be the last – the vast majority of Fed policymakers indicated that at least one more rate hike was likely necessary before the end of the year, according to their Summary of Economic Projections. US households and businesses have been battered by years of higher-than-target inflation, and prices have surged in the wake of Trump's war on Iran, his signature tariff policies and the ongoing AI boom. Trump reacted angrily to the decision, renewing his call for the Fed to lower interest rates "AND FAST" in a social media post. The US president has launched an unprecedented assault on the Fed's...