Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut

The briefing

The Federal Reserve raised its benchmark interest rate to about 3.9% in its first hike since 2023 to address stubborn inflation. Chair Kevin Warsh signaled that another rate hike could occur later this year, pushing the key rate to 4.1%. The decision comes as Americans struggle with high living costs and ongoing economic disruptions.