Fed hikes rates for first time since 2023 as inflation worries push bond yields above 5%

Fed hikes rates as inflation worries push up bond yields

The Federal Reserve raised interest rates for the first time since 2023, defying President Trump's expectation that his appointee Kevin Warsh would cut rates. The unanimous decision, driven by stubbornly high inflation and rising global borrowing costs, signals further hikes ahead, with 16 of 18 policymakers projecting at least one more increase this year. The 10-year Treasury yield topped 5% for the first time since 2023, while the S&P 500 held up on strong earnings and retreating oil prices.