US Federal Reserve raises interest rates for first time in three years

The U.S. Federal Reserve has increased its benchmark interest rate for the first time in three years, aiming to curb persistent inflationary pressures. The decision, announced by the central bank’s policy committee, marks a shift from the accommodative stance that has prevailed since the pandemic and signals a willingness to tighten monetary policy despite recent market volatility. The move is expected to set the stage for a possible clash between Fed Chairman Kevin Warsh, who supports the rate hike as a necessary tool to stabilize prices, and President Donald Trump, who has repeatedly urged the central bank to lower rates to spur economic growth.

In related developments, France announced an extension of fuel subsidies amid growing fishermen’s protests, a measure intended to alleviate rising operational costs for the maritime sector. Meanwhile, Hong Kong signaled its intention to align more closely with Beijing’s broader economic agenda, indicating a policy shift that could affect the city’s financial autonomy. Both actions reflect broader international efforts to address economic challenges through targeted fiscal and regulatory adjustments.