The Federal Reserve raised interest rates by 25 basis points to 4.0%, marking the first increase in three years. The move contrasts with President Trump's calls for lower rates ahead of November's midterms.
Fed Chair Kevin Warsh rejected Trump's demands, dismissing the president's influence on the decision. Trump criticized the rate hike as politically motivated, claiming the board is 'hostile' and 'political' despite his efforts to sway them.
The rate hike could raise mortgage rates and increase borrowing costs, impacting home buyers and consumers. Economists note the decision reflects ongoing inflation concerns, despite claims of economic growth under the Biden administration.