Federal Reserve Raises Interest Rates for First Time Since 2023, Defying Trump's Demand for Cuts

Are expected to raise local rates by 25bp immediately after the Fed to preserve deposit attractiveness and prevent capital outflows.

Says the Fed hike puts the regional economy before difficult equations and that tightening may not be the right tool for supply-side inflation.

Warns that continued hikes with oil above $100 raise domestic financing costs and weigh on non-oil sectors and major projects.

Posted on Truth Social that the American economy is genuinely booming.

Expects the RBA to hike in September and forecasts a 13 per cent peak-to-trough fall in national house prices that would reduce GDP.

Expects a September hike but warns further increases add downward pressure on house prices and risk slowing consumer spending and housing construction.

“Further rate rises will add to the downward pressure on house prices, which in turn risks more substantial slowing in consumer spending and housing construction.”

Says in a statement that economic activity is expanding at a solid pace with resilient domestic spending, that inflation remains elevated, and that the action will support a timelier return to the 2 percent goal. It also projects one more hike this year and no change next year.

““Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient,””

Says the economy is in an unusual place with unemployment comfortable but prices sticky, that pressure on Chairman Warsh to raise rates was compounded by concerns about Trump's pressure, and that the hike was already priced in so it will not be news.

““There [has been] a lot of pressure on Chairman Warsh to raise interest rates because of inflation coming in high, and that has been compounded by concerns about Trump’s pressure””

Demands on Truth Social that US interest rates be 1% or lower and lowered 'and fast', and tells reporters he still relies on Kevin Warsh but that the Fed board is hostile and rates are too high and inappropriate.

““Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR. Our Country is BOOMING with new Investment!””

Raised its benchmark rate by a quarter point to a 3.75–4% range in a unanimous vote and said the increase will support a timelier return to its 2 percent inflation goal.

““will support a timelier return to the Committee’s 2 percent goal””

Demands US interest rates be cut to 1% or less, arguing the US is the world's best credit and warning the current level cannot continue.

““Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR””

Says inflation is too high and has been for too long, defending the hike and declining to comment on any discussion with the president.

““The plain fact is that inflation is too high and has been for too long””

Says in a statement that inflation remains elevated and that the rate hike will support a return to the target rate, while uncertainty remains high partly because of geopolitical developments.

“"التضخم لا يزال مرتفعا وقرار رفع الفائدة سيدعم عودته إلى المعدل المستهدف"” ar

Appointed Kevin Warsh as Fed chair after repeatedly pressuring the central bank to lower interest rates, a demand the new hike defies.

Says inflation remains elevated and that the hike will support its return to the target rate, while pointing to continued high uncertainty partly from geopolitical developments.

““التضخم لا يزال مرتفعا وقرار رفع الفائدة سيدعم عودته إلى المعدل المستهدف”” ar

Appointed Warsh to the Fed chairmanship after repeatedly pressuring the central bank to lower interest rates.

Delivers the first major interest-rate decision of his tenure, a hike that sets him on a collision course with the president who appointed him.

Calls for US interest rates of 1% or less, citing the country's top credit rating, and demands rates be cut quickly.

““أسعار الفائدة في الولايات المتحدة ينبغي أن تكون 1% أو أقل لأننا نتمتع بأفضل تصنيف ائتماني في العالم”” ar

Raises its benchmark interest rate by 25 basis points to a 3.75–4% range, the first increase since July 2023, after six cuts totaling 175 basis points.

Raised the cost of money by 25 basis points from a range of 3.50–3.75% to 3.75–4% at the third board meeting chaired by Kevin Warsh.

Says US interest rates should be 1% or less because the country has by far the best credit rating in the world and is experiencing a boom in new investment, and calls on the Fed to lower rates quickly.

“"I tassi di interesse negli Stati Uniti dovrebbero essere dell'1% o meno, perché vantiamo il miglior merito creditizio al mondo — DI GRAN LUNGA. Il nostro Paese sta vivendo un BOOM di nuovi investimenti! ABBASSATE I TASSI DI INTERESSE PER GLI STATI UNITI D'AMERICA, E FATELO IN FRETTA!"” it

Raises rates to 3.75%–4% from 3.5%–3.75% in a unanimous decision, its first rate move in any direction since December 2025.

Calls on social media for interest rates to be lowered 'and fast', expresses support for Warsh while calling the Fed board 'very hostile' and 'very political', and says rates are too high and inappropriate.

“"LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"”

Says the hike was a sober and responsible decision because inflation is too high and has been for too long, notes inflation has exceeded the 2% target for more than five years, and declines to comment on discussions with the president.

“"inflation is too high and has been for too long"”

Says the rate increase will make everything more expensive and blames it on Trump's inability to manage the economy.

“"This is going to make everything become more expensive"”

Say the rate increase will make loans costlier and push more Americans into debt.

Raised its policy rate 25bp to 3.75%-4% unanimously and is not signalling that this is a one-off move.

Faces pressure to raise its CRB rate to defend the shilling and stem the outflow of foreign capital from Kenyan assets.

Threatened in early September to stop trade with countries running trade surpluses with the US if the Fed failed to cut rates, a remark that raised the Fed independence issue.

Says the plain fact is that inflation is too high and has been for too long and that the unanimous vote shows the committee's resolve, warns of unanchored inflation expectations, declines to give forward guidance, says the Fed has set up a task force on AI, and calls Fed independence a 'two-way street' in which officials 'stay in our lane'.

“"The plain fact is that inflation is too high and has been for too long,"”

Votes 12-0 to raise the federal funds rate by 25 basis points to 3.75–4%, stating that inflation remains elevated and the action supports a timelier return to its 2 percent goal.

“"Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability,"”

Says the hike reinforces the Fed's credibility and marks a shift in policy direction, and expects Chair Warsh to keep further hikes on the table while avoiding a commitment to a prolonged tightening cycle.

“"It is a shift in policy direction."”

Posts that US interest rates should be 1 per cent or less because the US is the best credit in the world and demands the Fed lower rates 'AND FAST', and separately blames the trade deficit on the US 'carrying' almost every country in the world.

“"Interest rates in the United States should be 1 per cent, or less, because we are the best credit in the world - by far,"”

Says the decision to raise rates was a serious and needed one because the plain fact is that inflation is too high and has been for too long, and stresses the resilience of the US economy.

“"The plain fact is that inflation is too high, and has been for too long,"”

Votes unanimously to raise rates by 25 basis points to between 3.75 and 4.00 per cent.

Says inflation forced the Fed's hand, with price pressures too elevated and persistent for policymakers to look through while the economy and labour market have held up well enough to absorb tighter policy.

“"Price pressures remain too elevated and too persistent for policymakers to look through, while the economy and labour market have held up well enough to absorb tighter policy,"”

Says Warsh's assessment that monetary policy is not yet restrictive sends a 'really big signal' that rates need to be higher to slow the economy and bring inflation down, and that raising rates despite Trump's preference sends a strong message about Fed independence.

“"Even though the president might want rates lower, right now the Fed’s job is to get inflation under control,"”

Warns the Hong Kong dollar–US dollar interest-rate differential will widen and carry-trade activity may push the Hong Kong dollar toward the weak side of its trading band.

““The Hong Kong dollar and U.S. dollar interest rate differential will widen, and carry trade activities may cause the Hong Kong dollar to ease toward the weak side of the band””

Says the Fed's hike was in line with market expectations and reflected the committee's inflation concerns, and that Hong Kong's monetary and financial markets continue to operate in an orderly manner.

““Hong Kong's monetary and financial markets have continued to operate in an orderly manner, and banks would take into consideration factors including funding supply and demand, the level of interest rates, and their own funding cost structures when making decisions on interest rates””

Has launched an unprecedented campaign pressuring the independent central bank to cut rates, claims Warsh wants lower rates, and accuses the board of being political.

Has hinted that the Fed may need to intervene if inflation does not meaningfully slow, and is seen by analysts as proving his credibility by backing a hike the president opposes.

Calls the shift an about-face but not a surprise, saying inflation is still well above the 2% target and has become embedded in consumer and firm behaviour, which the Fed must prevent.

““It is an about-face, but not a surprise. Inflation is still well above the two-percent target””

Advocated against a rate hike but said the White House would understand and respect the decision if it occurs.

““understand and respect the decision””

Warns that a hike could lead the administration to conclude Warsh's hand is being forced by hawkish committee members and to redouble efforts to remove some of them.

““There's the risk that the administration will decide that Kevin's hand is being forced by some hawkish people on the committee, and so they'll redouble their efforts to get rid of some of them.””

Calls the situation unfortunate because a chair should not have to prove himself by inflicting higher mortgage rates on Americans, but describes it as the reality of the moment.

““You shouldn't have to prove yourself by inflicting Americans with higher mortgage rates. But it is kind of the reality of this situation””

Says inflation has been too high for too long and that underlying inflation is not yet moving back to target clearly and fast enough.

“We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed. Today, the FOMC decided that this standard has not been satisfied.”

Calls the decision a sign the FOMC regained its resolve and sided with ordinary households over the case for standing pat.

“Today's FOMC could mark the moment when the FOMC regained a measure of spine.”

Said the Fed's top priority is inflation and that financial conditions are widely seen within the FOMC as not restrictive.

“金融環境は引き締め的ではないとの見方がＦＯＭＣ内で広く共有された” ja

Is expected to raise its policy rate to 1.25%, making September a simultaneous tightening by the Fed, ECB and BOJ.

Writes that the Fed faces little need to suppress demand because inflation is driven by tariffs and oil, and expects the BOJ to raise its policy rate to 1.25% in September.

Has demanded lower rates, making the hike a move likely to anger him.

Says the decision to raise rates was based on the Fed's own assessment of the situation and not on financial markets, and that the Fed's independence comes from staying focused on its objectives and keeping to its lane while inflation is too high and has been for too long.

“"We made this decision today based on our assessment of the situation,"”

Votes unanimously to raise rates to between 3.75 and 4.00 per cent, citing elevated inflation and adding that the hike would support a timelier return to its 2pc target.

“"elevated"”

Has long demanded lower interest rates and appointed Warsh to head the Fed in May specifically for that purpose.

Asserts he never committed to a specific rate decision with the president and was never asked to, and says he wants to lead the Fed independently, a stance the hike is framed as balancing critics who wanted action on price stability against those who doubted his independence.

As Warsh's predecessor, was not prepared to lower interest rates.

Raised its key interest rate last week, its second increase this year, lifting the deposit rate from 2.25% to 2.5% amid inflation driven higher by the Iran war.

Raises interest rates by 25 basis points to 3.75%–4.00% in a unanimous decision aimed at stubbornly high inflation.

Says US interest rates should be 1% or lower and should be cut fast, and says he told Kevin the Fed board is very hostile, very political and doing the wrong thing.

“"And I said you might as well vote with the board because it's not going to matter. The board is very hostile. They're very political. They're doing the wrong thing."”

Says the Fed's predominant focus is the price-stability side of its mandate because inflation is too high and has been for too long, that the action supports a timelier return to the 2% goal, and that the decision was the Fed's own and that it stays in its lane on independence.

“"Our predominant focus is on the price stability side of our mandate. The plain fact is that inflation is too high, and has been for too long,"”

Votes unanimously to raise its benchmark rate to a 3.75%–4% range and says in a statement that the policy decision will support a more timely return to the committee's 2 percent inflation goal; its median forecast now implies 4.1% rates by the end of 2026.

““La decisión de política monetaria adoptada hoy respaldará un regreso más oportuno al objetivo de 2 por ciento del Comité”” es

As chair, again declined to submit his own rate projections, as he did in June, and his relationship with President Trump is framed as set to be tested by the hike and further tightening.

Raised its benchmark rate by a quarter point to 3.75–4%, its first hike since July 2023, and projects further increases this year to bring inflation back towards its 2% target.

Demands that the Fed cut rates immediately to 1% or less and threatens to stop trading with deficit countries if it does not.

““¡BAJAD LOS TIPOS DE INTERÉS PARA ESTADOS UNIDOS, Y HÁCEDLO RÁPIDO!“” es

Presents the unanimous quarter-point hike as proof of the committee's determination to restore price stability quickly and says the Fed will keep to its own remit while trade and fiscal officials mind theirs.

““La votación unánime del Comité demuestra nuestra determinación de lograr la estabilidad de precios en un plazo más breve”” es

Warns that if the Fed raises rates the president will not be at all happy about it.

““Si hay una subida de tipos, estoy seguro de que el presidente no va a estar supercontento”” es

Has upheld the Fed's independence from the executive branch, recognised presidential authority in its tariff ruling, and ruled against Trump's attempt to change the mail-in voting rules before the 3 November election.

Wants the central bank to lower borrowing costs or hold them unchanged.

Faces a test of the Fed's credibility, caught between markets expecting a hike and Trump wanting lower rates.

Says the paradox is that raising rates now could lower long-term rates later if confidence in the 2% target is restored.

“تناقض همین جاست: افزایش نرخ بهره اکنون می‌تواند نرخ‌های بلندمدت را بعدا پایین بیاورد.” fa

Was repeatedly criticized by Trump for not cutting rates fast enough.

Says Trump will not be happy with the decision but will above all defend Warsh's independence.

“مطمئنم خیلی از این تصمیم خوشحال نخواهد شد، اما بیش و پیش از هر چیز از استقلال کوین وارش دفاع خواهد کرد.” fa

Says Warsh cares about his legacy and knows that Fed chairs who follow political pressure do not fare well in history.

Says the Fed can skip further hikes if new data shows inflation is fading as expected.

Raised rates to 3.75%-4.00%, its first since July 2023, with the dot plot pointing to further hikes this year.

Is pushing measures to support vulnerable borrowers and promote long-term fixed-rate mortgages to reduce rate-change risk.

Raised its key interest rates for the first time in three years in an effort to bring down high inflation.

Has repeatedly called on the central bank to cut interest rates, positioning himself against the Fed chair who has now raised them.

Raised US rates to 3.75%-4%, its first hike since July 2023, citing elevated inflation and resilient domestic spending.

Cut the Selic to 13.75%, citing disinflation and caution over fiscal and external uncertainty, calling the move compatible with converging inflation to target.

“Essa decisão é compatível com a estratégia de convergência da inflação para o redor da meta ao longo do horizonte relevante.” pt

Raised its policy rate by 25 basis points to a 3.75–4% range at its September meeting, its first hike since 2023.

Calls for US rates to be cut to 1% or below and quickly, arguing the country has the world's best credit standing and that carrying the world's economies cannot continue.

“ABD için faiz oranlarını düşürün ve hızlıca.” tr

Demands the Fed cut rates because the US has a much stronger credit standing than in recent times, and has warned he would otherwise stop trading with deficit countries and wants the world's lowest rates.

“"¡Bajen las tasas de interés porque EEUU tiene un crédito mucho más sólido que en los últimos tiempos!"” es

Said at Jackson Hole that the inflation situation is troubling and that summer readings do not show underlying trends have meaningfully improved, leaving the central bank with work to do.

“"no indican que las tendencias subyacentes hayan mejorado significativamente"” es

Says Warsh was pressured at Jackson Hole to clarify the Fed's reaction function after taking a more restrictive stance in June and then walking it back at the July FOMC press conference.

“"Tras adoptar una postura más restrictiva en junio y luego retractarse en la conferencia de prensa del FOMC de julio, el presidente Warsh se vio presionado para aclarar la función de reacción de la Reserva Federal bajo su liderazgo en Jackson Hole"” es

Says the current level of interest rates does not yet amount to restrictive territory and that overall financial conditions remain accommodative, while support for further hikes grows inside the committee.

“"las condiciones financieras generales continúan siendo laxas"” es

Has indicated in advance that he would back raising the benchmark rate if inflation continued to climb.

Says the first rate hike in 1,148 days is already fully priced in, so Treasury yields now turn on inflation and policy-rate projections, and that his firm expects less tightening than money markets discount.

“"La primera subida de tipos en 1.148 días ya está ampliamente descontada por el mercado, por lo que la evolución de los rendimientos de los bonos del Tesoro de EEUU dependerá ahora de las proyecciones de inflación y de las previsiones de tipos oficiales. Nuestras previsiones revisadas para el bono a 10 años se sitúan por debajo de los tipos 'forward', ya que anticipamos un endurecimiento monetario menor al que descuentan los tipos del mercado monetario"” es

Expects the Fed to raise rates by 25 basis points in September with the possibility of further hikes, though additional increases may not materialise if inflation data keep improving.

“"Ahora esperamos que la Reserva Federal suba los tipos en 25 puntos básicos en septiembre, con la posibilidad de algunas subidas más en el futuro. Sin embargo, si los datos de inflación continúan mejorando, es posible que las subidas adicionales de tipos finalmente no se materialicen"” es

Says a hike to 1.25% is already priced in and that rates must be raised in a timely manner to contain inflation, warning that delay could leave no choice but a sharp increase.

“"In the face of advancing inflation, interest rates must be raised in a timely manner to contain it. If the response is delayed... you may end up having no choice but to raise rates sharply."”

Expects inflation excluding fresh food and energy to rise further towards 2.5% by early next year and warns headline inflation could exceed 3% if the government does not resume electricity and gas subsidies.

“"We expect inflation excluding fresh food and energy to rise further towards 2.5 percent by early next year,"”

Says markets read the US Treasury secretary as demanding faster rate hikes in exchange for intervention, and that the cost of disappointing markets and Washington has become too big for the BOJ and government to ignore.

“"Financial markets appear to reflect the idea that the U.S. Treasury secretary demands faster rate hikes in exchange for intervention,"”

Expressed strong support for Japan's decisive market and monetary steps to address the substantial undervaluation of the yen in an August conversation with BOJ Governor Kazuo Ueda.

“"strong support for Japan's decisive market and monetary steps to address the substantial undervaluation of the yen"”

Is poised to raise its key rate by 0.25 percentage points to 1.25%, the highest level in more than three decades, to counter energy-driven inflation and support the yen.

Pursues a fiscally expansionary policy of higher public spending, notably on defence, and tax breaks, which is worrying investors.

Says the administration retains a large toolkit to manage the bond market through buybacks of long-dated Treasuries.

“a big tool kit, so we'll see”

Notes bond buyers began returning as the 10-year yield hit 5% and warns that raising rates carries costs for the government's fiscal position.

“Rate hikes aren't costless.”

Describes a perfect storm of growing debt, sticky inflation and AI funding needs, and says he is skeptical of the Treasury's toolkit.

Questions Treasury reliance on short-term bill issuance, saying the front end is not the optimal place to borrow.

“I don't know that the front end is the optimal place to be borrowing right now.”

Has repeatedly demanded lower interest rates, saying the US should have among the world's lowest.

His statement and forward guidance are now the key focus for investors assessing further tightening.

Says the Fed hike removes space for Banxico rate cuts, with Banxico expected to hold this year and possibly resume cuts in 2027.

“Aunque la política monetaria de México es independiente de la de EEUU, el alza en tasa de la Fed quita espacio para recortes de tasa en México.” es

Unanimously raised its key rates by a quarter point to 3.75–4%, the first increase since the summer of 2023, and projects rates of 4–4.25% by year-end with PCE inflation still running at 3.7%.

Demands that the Fed cut US rates quickly and says the rate should be 1% or less.

“« BAISSEZ LES TAUX POUR LES ÉTATS-UNIS D'AMÉRIQUE, ET VITE ! »” fr

Sharply criticised the Fed's handling of the post-pandemic inflation surge before taking office, then as chair led the unanimous rate rise that disappointed the president who appointed him.

Says it is important that the Fed not touch rates before an election in order to preserve its independence.

“« important que la Fed ne touche à rien avant une élection afin de préserver son indépendance »” fr

Raised its key rate by a quarter point to 3.75–4.00% in the fight against stubborn inflation, its first increase since mid-2023.

Says US rates should be 1% or less given the country's best-in-class credit standing, calls Warsh a good man facing a hostile board, and accuses the Fed of raising rates to damage him as much as possible.

“"Sie erhöhen die Zinsen, um Trump so viel Schaden wie möglich zuzufügen."” de

Says the decision was the right one for fulfilling Congress's mandate of ensuring stable prices, and that Fed independence also means concentrating on its own field of competence.

“"Die heutige Entscheidung war richtig, um den Auftrag des Kongresses zur Gewährleistung stabiler Preise zu erfüllen."” de

Demanded at the weekend that the US have the world's lowest interest rates and earlier this month threatened on Truth Social to stop trading with deficit countries unless the Fed cut rates.

““Senkt den Zinssatz, sonst stelle ich den Handel mit Ländern ein, mit denen wir ein Defizit haben.”” de

Faces a delicate balancing act in his first four months in office, with stubborn 3.4% August inflation arguing for a hike while the president demands the opposite, and must show the Fed sets its course independently of the White House.

Says the dollar is pulled by two opposing forces — higher rates support it short-term while high state debt, deficits and questions about monetary-policy credibility are long-term headwinds — and that investors now ask whether higher yields signal economic strength or greater inflation, fiscal and credibility risk.

““Kurzfristig unterstützen höhere Zinsen die Währung, langfristig sorgen jedoch hohe Staatsschulden, Defizite und auch Fragen zur geldpolitischen Glaubwürdigkeit für Gegenwind.”” de

Expects Trump to rage against the hike because the Treasury's heavy reliance on short-dated bonds makes higher Fed rates feed quickly into the state's interest costs.

““Trump wird toben”” de

Considers a conflict between Warsh and Trump almost unavoidable and expects the market to gradually grasp this, as reflected in more expensive hedging against dollar depreciation.

““nahezu unausweichlich - und das dürfte auch dem Markt so langsam dämmern”” de

Voted 12-0 to raise its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, its first increase since 2023.

Said in June that he loved inflation, arguing price rises were temporary and would drop sharply once his war on Iran was concluded.

““I love the inflation,””

Says inflation is too high and has been for too long, declines to say whether further hikes will follow, and refuses to comment on Trump's demands, saying the Fed stays in its lane.

““The plain fact is that inflation is too high, and has been for too long.””

Opposes the hike, arguing that with the economy growing and inflation less than half the level endured under President Biden, rates should be coming down rather than going up.

““With the economy growing, businesses hiring and investing, and inflation at less than half the rate American families endured under President Biden, interest rates should be coming down, not going up,””

Blames the rate hike on Trump's tariff taxes and the Iran war, which he says have sent inflation soaring and left the president unable to deliver on his promise to lower costs.

““The Federal Reserve just raised interest rates because Donald Trump’s tariff taxes and Iran war have sent inflation soaring. It’s been over two years since Trump promised to lower costs on ‘Day One.’ Instead, he’s done the exact opposite.””

Calls the hike inevitable given higher energy prices and persistent above-target inflation, and says it is a pivotal moment for Warsh that risks a repeat of the barbs Jerome Powell suffered.

““This is a pivotal moment for Kevin Warsh too. He was brought into the Fed as Trump’s guy, poised to deliver the rate cuts he so desperately wants. However, his first move of significant impact is in fact an interest rate rise, and this risks hampering the relationship between the two and thus a repeat of the barbs Jerome Powell suffered during his tenure.””

Expects one more hike later this year and sticks with a forecast of a third hike in early 2027, judging that Fed officials underestimate the potential for unemployment to decline.

““The Fed appears to be on board with our view that its hike today will be followed by one more later this year. While the latest Summary of Economic Projections implies that the Fed may be content with just two hikes in total, we judge that Fed officials are underestimating the potential for the unemployment rate to decline, meaning we are sticking with our forecast for a third hike in early 2027 as well.””

Is under a credibility test, with the market expecting him to deliver the hike to avoid confronting market pricing after a hawkish Jackson Hole tone.

Expected to cut the Selic by 0.25 point, a largely consensual and procedural decision with no major change in communication.

Argues the hike is a risk-management adjustment aimed at preventing inflation persistence and expectation de-anchoring while the economy and jobs remain resilient.

Co-authors the analysis of the Fed's shifted reaction function and the conditioning of further hikes on inflation persistence and labour-market evolution.

Emphasizes that achieving price stability is the Fed's own responsibility, implying less tolerance for inflation running above target.

Its research is cited to argue that long-term inflation expectations depend on historical inflation experience, so apparently anchored expectations could re-sensitize.

Raised its benchmark rate by a quarter point to 3.75–4.00% in a unanimous 12-0 vote and signalled the possibility of another increase later this year amid persistent inflation and high oil prices.

Has threatened to stop trading with countries running trade surpluses with the United States unless the central bank lowers rates, and has pressured the Fed to cut borrowing costs ahead of the November midterms.

Raised its benchmark rate by a quarter percentage point to the 3.75–4.00% range, its first hike since July 2023.

Has threatened to stop trading with countries running trade surpluses with the United States unless the central bank lowers rates, and has kept pressuring the Fed to cut borrowing costs to boost the economy ahead of the November midterms.