The US Federal Reserve is anticipated to increase interest rates, marking the first such adjustment since 2023. This expected move comes as the central bank addresses persistently high inflation across the economy. Kevin Warsh, who was selected by Donald Trump as a candidate for Fed chair, is predicted to lead this decision.
The Federal Reserve is widely expected to raise the federal funds rate by 25 basis points, equivalent to a quarter of a percentage point. This change would establish a new target range for the benchmark rate between 3.75% and 4%. The anticipated rate hike proceeds despite notable opposition from the president.