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

The US Federal Reserve has raised interest rates by a quarter of a percentage point, marking its first increase in three years. This move is aimed at combatting high inflation, which the Fed considers "elevated". The decision is likely to upset US President Donald Trump, who has previously expressed opposition to interest rate hikes. The impact of this rate hike will be closely watched by markets, as it may influence borrowing costs and economic growth.

Why it matters

The interest rate hike by the Federal Reserve could slow down the US economy. This might lead to a decrease in investor sentiment and a potential decline in stock prices.

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