US interest rates raised for first time in three years

Asked about the message the decision sent to Trump, Warsh chuckled before saying "I have got nothing for you on a discussion with the president".The Federal Reserve is independent of the government, but has faced sharp criticism from Trump over its decisions on rates in recent years.Trump was heavily critical of Warsh's predecessor Jerome Powell for not cutting rates.The US president appointed Warsh to take over as Fed chair after Powell stepped down at the end of his term earlier this year.Following Wednesday's announcement, Trump said on social media: "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"Earlier, White House Press Secretary Kush Desai told Fox News the president and White House had reiterated their "commitment to the independence of the Federal Reserve on numerous occasions" but said that did not prevent Trump being able to voice his opinions.Warsh said at Wednesday's press conference that "part of the independence of the Federal Reserve is we stay in our lane".The Fed's hike is the first move rate move in any direction since they were cut in December 2025. The last time they were raised was in July 2023. A 0.25pp increase will likely add to incre...