EconomyUS Fed defies Trump, raises benchmark interest rate for first time in three years

The US Federal Reserve raised its benchmark interest rate on Wednesday for the first time since 2023, marking a major policy reversal. Chair Kevin Warsh said the move was partly driven by an economy increasingly shaped by the ongoing war in the Middle East. He said activity was expanding solidly, while geopolitical uncertainty remained elevated, and the hike aims to cool spending and prevent further pressure.