The Federal Reserve increased borrowing costs for the first time in three years, rejecting President Donald Trump's demands for lower rates.
Published
The Federal Reserve raised its key interest rate for the first time in three years. The unanimous decision comes as prices remain stubbornly high, defying President Donald Trump's public demands for a cut.
Trump called for interest rates of 1% or lower per CNBC and previously threatened to cut off trade with countries holding trade surpluses with the US if the Fed did not comply. Despite the rate hike, Trump stated he still has confidence in Fed Chair Warsh.
Financial markets are bracing for further increases following this move. The hike marks a significant shift in monetary policy after a prolonged period of steady rates.
Separately, a US court ruled that the Trump administration can proceed with its overhaul of a homelessness program. The decision allows the administration to move forward with its policy changes regarding housing assistance.
Sources: 1. AP News: Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut - apnews.com — https://news.google.com/rss/articles/CBMingFBVV95cUxPVlB2TmNqY1dILUtfRTFBQ0JPSk53elRnU1QzdmhIQ3VvTWlkelRTd3haWHJ4bmxiY2ZOcGhvd09wMTllVkVLQzk5NkdKZzNPeHpaZTRHQ242Ynd2Q1ZIUU50cUp1N2JYd1lCQndZQlhMUTZFekFZWWNueUxNbmRiUHdBZ2dWbDgzNlhmejZneHptaFhGbDI1M0JPbk8zZw?oc=5 (src1) 2.