US Federal Reserve Raises Interest Rates After Three Years
In a unanimous decision aimed at combating high inflation, rates were raised to the 3.75-4 percent range.
The US Federal Reserve, with a unanimous decision, raised interest rates to the 3.75-4 percent range after more than three years in order to slow down rising inflation.
Interest Rate Hike and Federal Reserve Decision
The US Central Bank increased interest rates for the first time in over three years in order to slow down rising price increases.
In line with the decision taken unanimously by Fed officials, rates were raised from the 3.5-3.75 percent level to the 3.75-4 percent range.
Disagreement with President Trump
This decision was implemented despite the fierce opposition of President Donald Trump, who argued that interest rates should be lowered.
Trump argued that rates should be 1 percent or lower and demanded via social media that rates be cut rapidly.
Statements by Fed Chair Kevin Warsh
Fed Chair Kevin Warsh stated that the main reason behind the interest rate hike decision was that inflation is too high and this situation has persisted for a long time.
Policymakers forecast that interest rates could be raised again by the end of the year.
Changes in Major Banks' Lending Rates
Following the central bank's move, major US banks including JP Morgan, KeyCorp, and BNY raised their prime lending rates from 6.75 percent to 7 percent.