US Federal Reserve raises interest rates for first time in 3 years, risking Trump’s ire

The Federal Reserve on Wednesday raised interest rates in the world’s largest economy by a quarter of a percentage point to tackle stubbornly high inflation, a move sure to anger US President Donald Trump, who has demanded lower rates.

The Fed’s Federal Open Market Committee voted unanimously to raise rates to between 3.75 and 4.00 per cent, citing “elevated” inflation and adding that the rate hike would support a “timelier return” to its 2 per cent target for the metric.

A majority of Fed policymakers expect at least one more rate hike to be necessary before the end of the year, according to the central bank’s Summary of Economic Projections, also published on Wednesday.

Fed Chair Kevin Warsh will address a press conference following the announcement.