From New York Post · · 50s
Fed Hikes Rates, Trump Pushes Back
Fed raises rates for first time in three years as Trump demands cuts.
In brief
Fed raises rates for first time in three years as Trump demands cuts. The Fed increased interest rates to 3.75%-4% to combat inflation, drawing criticism from Trump who called for rates to drop to 1%. Originally reported by New York Post.
Rate Hike Announcement
The Federal Reserve raised rates by a quarter point to 3.75% to 4%.
Trump's Rebuke
Trump wrote on Truth Social that rates should be 1% or less.
Warsh's Stance
Warsh said inflation is too high and the move shows seriousness.
“The plain fact is that inflation is too high and has been for too long.”
Market Reaction
Dow Jones dropped 633 points after the Fed decision.
Investor Concerns
12 of 18 Fed officials expect one more rate hike this year.
Future Hikes
A second rate hike before November could anger Trump.
The takeaway
The Fed increased interest rates to 3.75%-4% to combat inflation, drawing criticism from Trump who called for rates to drop to 1%.
