WATCH LIVE: Warsh holds briefing after Fed meeting as interest rates expected to rise
Summary
The Federal Reserve is expected to raise short-term interest rates for the first time in three years to tackle high inflation. Federal Reserve Chair Kevin Warsh will explain the decision in a news conference, despite President Donald Trump wanting the Fed to lower rates.Key Facts
- The Fed’s current short-term interest rate is about 3.6%.
- A rate increase, possibly by 0.25%, is anticipated but not officially confirmed.
- Inflation remains above the Fed’s 2% target, partly due to higher oil and gas prices caused by the Iran conflict.
- President Trump supports cutting interest rates to keep them low, but the Fed is independent.
- The rate decision comes seven weeks before the U.S. midterm elections, where high prices are a major issue.
- Financial markets believe there is a 90% chance the Fed will raise rates at this meeting.
- Warsh has emphasized the need to control inflation to maintain the Fed’s credibility.
- Higher interest rates could affect longer-term loans and bonds, such as those lasting 10 or 30 years.
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