World Economy

Fed Raises Rates 25 Basis Points Despite White House Pressure

The Federal Reserve voted unanimously to raise interest rates by a quarter percentage point, reinforcing its commitment to controlling inflation despite mounting political pressure from the Trump administration. Chairman Kevin Warsh defended the decision as necessary to restore price stability on an accelerated timeline. The central bank also signaled additional rate increases later this year as inflation remains above its target level. The move sets up a potential clash between Warsh and President Trump, who has criticized the Fed's tightening stance. Uncertainty surrounding oil prices and the administration's tariff policies continues to complicate the Fed's inflation outlook. Analysts say Warsh faces a critical test of independence as economic crosscurrents intensify.