Trump Vs Warsh: Fed Rate Hike Sparks Fresh Clash Over Inflation And Borrowing Costs

The U.S. Federal Reserve has raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4%, marking its first rate hike since July 2023. The unanimous decision came as the Fed continues to focus on persistent inflation and price stability. Chair Kevin Warsh said inflation remains too high and stressed the central bank’s commitment to its mandate. The move has drawn criticism from President Donald Trump, who has repeatedly called for lower borrowing costs. Global markets reacted to the decision as investors reassessed the outlook for interest rates, liquidity, currencies and economic growth.