U.S. Federal Reserve raises interest rates for first time in three years

In a unanimous vote, the Federal Reserve raised interest rates on Tuesday, marking the first increase since early 2022. The decision, which was supported by all members of the policy committee, was taken despite vocal opposition from President Donald Trump, who publicly urged a reduction in rates to spur economic growth.

The rate hike, amounting to a 0.25‑percentage‑point increase, reflects the central bank’s assessment that inflation pressures remain elevated and that the labor market is robust enough to absorb tighter monetary policy. While the President argued that lower rates would benefit businesses and consumers, the Fed emphasized its mandate to maintain price stability. The move is expected to influence borrowing costs across the economy, including mortgages, auto loans, and corporate financing, as markets adjust to the new policy stance.