‘Inflation is too high…’: Fed hikes interest rates by 25 bps as Warsh resists Trump’s cut demand

The Federal Reserve has raised interest rates for the first time since 2023, lifting its benchmark rate by 25 basis points to a target range of 3.75% to 4%. The unanimous 12-0 decision follows a two-day policy meeting as the Fed confronts inflation that remains above its 2% target, along with renewed pressure from higher energy prices. Speaking at a press conference after the decision, Warsh said the Federal Reserve's predominant focus will remain on controlling inflation.