US Fed defies Trump, raising benchmark interest rate for 1st time in 3 years

By Global News

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A major policy turn-around in the United States as the Federal Reserve raises its benchmark interest rate for the first time since 2023 on Wednesday. Chairman Kevin Warsh says raising the rate was made in response to an economy increasingly shaped by the ongoing war in the Middle East. “Economic activity is expanding at a solid pace,” even though “uncertainty remains elevated, owing in part to geopolitical developments,” Warsh said on Wednesday. The hike is designed to cool spending and prevent inflation from rising even further. Warsh was hand-picked to oversee the Fed by U.S. president Donald Trump, who has repeatedly called on the central bank to lower rates. Earlier this month, Trump threatened to cut off trade with some of America’s top partners if the rate was not lowered. For more info, please go to https://globalnews.ca/news/12061219/us-federal-reserve-interest-rates-3/ Subscribe to Global News Channel HERE: http://bit.ly/20fcXDc Follow Global News on X HERE: htt

Tags: global news, National, News, US Federal Reserve, Interest Rate, Interest Rate Hike, Chairman Kevin Warsh, Donald Trump, US Economy, Middle East, Benchmark Interest Rate