Fed hikes rates for the first time in three years, defying Trump
US interest rates raised for first time in three years
The Federal Reserve raised its benchmark rate to 3.75%–4% in a unanimous vote, its first increase since 2023, as Chair Kevin Warsh said inflation has run above the 2% target for over five years. President Trump had demanded cuts and called the board "hostile." Major banks lifted their prime rate to 7%, and most policymakers expect further hikes this year.
Inflation is too high and has been for too long.
- qalmakka
This is basically self inflicted, as usual messing up in the Middle East always ends up with consumer paying the price for their ruler's stupidity
"Oh no, my drinking water tastes like crap after I pooped in the well"
- aurareturn
This administration wants lower rates. Also this administration does everything it can to increase inflation such as tariffs and starting another endless war in the middle east.
- blahblaher
This wont do absolutely nothing whatsoever to bring down inflation. Interest rates don't open the Straight of Hormuz, don't increase production of oil or any other commodities.
the only way interest rates affect anything is when they meaningfully decrease investment, consumption, in other words a recession or depression.
- mitxela
The government has fully lost control of the long-term Treasury yield - this is their attempt to bring it back under control.
I expect to see the president fire the Fed, nationalise it and make the rates negative, collapsing the economy.
- eightman
So Trump spent weeks on a fake fraud investigation into Powell to try and force him out because he would not cut the rate, fails at that, then finally gets his choice in place and the dude raises rates almost immediately?
- xnx
- benj111
Meanwhile Bessent is buying long dated bonds and selling short dated, betting the yields will go down.
Dear US, try not to take the rest of the world with you when. You implode.
- dashee
And the dot plots suggest no rate decreases until 2028.