{"id":224497,"date":"2026-09-17T10:23:37","date_gmt":"2026-09-17T10:23:37","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/fed-raises-interest-rates-for-first-time-since-2023-defying-trump-as-inflation-mounts-nbcnews-com\/"},"modified":"2026-09-17T10:23:37","modified_gmt":"2026-09-17T10:23:37","slug":"fed-raises-interest-rates-for-first-time-since-2023-defying-trump-as-inflation-mounts-nbcnews-com","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/fed-raises-interest-rates-for-first-time-since-2023-defying-trump-as-inflation-mounts-nbcnews-com\/","title":{"rendered":"Fed raises interest rates for first time since 2023, defying Trump as inflation mounts – nbcnews.com"},"content":{"rendered":"

news Alerts
There are no new alerts at this time
The Federal Reserve raised its benchmark interest rates for the first time since 2023 on Wednesday in a move aimed at slowing inflation that picked up again last month.
The Fed\u2019s hike of 0.25% brings the central bank\u2019s flagship rate to between 3.75% and 4.00%.
The Fed\u2019s policymakers unanimously supported the rate hike and signaled one more interest rate hike could come before the end of the year.
The Fed\u2019s decision, which defied President Donald Trump\u2019s wishes for lower interest rates, is a response to elevated inflation readings as the war with Iran drives up prices.
\u201cUncertainty remains elevated owing, in part, to geopolitical developments. Today\u2019s policy action will support a timelier return to the Committee\u2019s 2 percent goal,\u201d the Federal Reserve\u2019s statement<\/a> read, referring to its Federal Open Market Committee, or FOMC.
The hike could also be the start of a rate-hiking cycle. Historically, when a central bank raises rates once, it follows it up with additional increases.
\u201cThe plain fact is that inflation is too high and has been for too long,\u201d Fed Chair Kevin Warsh said at a news conference in Washington after the announcement.
\u201cWe must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,\u201d he said. \u201cToday, the FOMC decided that this standard has not been satisfied.\u201d
Released alongside the Fed\u2019s rate decision Wednesday were economic projections. As of this week, all but two members of the Federal Open Market Committee forecast another rate increase this year.
Trump has demanded lower interest rates for years. In early February, he told NBC News that Warsh <\/a>would not have gotten the nomination for Fed chair unless he wanted to lower rates.
Late Wednesday, Trump responded to the rate hike by demanding, \u201cLOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!\u201d
Trump said the benchmark funds rate \u201cshould be 1% or less,\u201d because the U.S. has \u201cthe Best Credit in the World.\u201d However, that is not accurate. Several countries, including Canada, Australia and Germany, are all rated higher by S&P.
\u201cWarsh and the committee are sending a clear message that the Fed will not tolerate inflation drifting further above target, even in the face of political pressure from the White House,\u201d said Brian Rehling, co-head of global fixed income at Wells Fargo.
Asked by a reporter Wednesday what his message for Trump about the rate hike was, Warsh replied, \u201cI\u2019ve got nothing for you on a discussion with the president.\u201d
Kevin Warsh says Fed will \u2018stay in its lane\u2019
The war with Iran changed the circumstances after the U.S. and Israel launched it Feb. 28. After less than four months on the job, Warsh is now presiding over a Fed that is increasing rates.
The Iran war has sparked a massive surge in the price of oil this year. That has, in turn, sent gas prices higher by more than 45% since it began.
Those energy prices have helped push inflation up to 3.4% as of August, above average U.S. wage growth of 3.1%.
But Warsh was clear Wednesday about the limits of the Fed\u2019s power to affect direct costs consumers pay.
\u201cWe cannot affect any individual price, whether it be oil prices, whether it be foodstuffs at the grocery store,\u201d he told reporters.
\u201cBut what we can do, and will do, is ensure that any change in relative prices don\u2019t broaden out, don\u2019t have second- and third-order effects in the economy,\u201d he said.
As Warsh spoke, major stock indexes reversed their earlier gains and turned lower for the trading session.
The S&P 500 closed the day lower by 0.4%, while the Nasdaq Composite ended flat. The Dow fell 630 points, weighed down by sizable drops in shares of IBM, Goldman Sachs, Boeing and American Express.
Following Wednesday\u2019s rate increase, the 30-year Treasury bond yield declined slightly, but it remains at its highest level in years. The yield on the 10-year Treasury bond had fallen earlier in the day, but by 4 p.m. ET it was back up near its highest level since 2007.
Warsh attributed the recent surge in bond yields to three factors.
\u201cFirst is economic strength,\u201d he said. The second is \u201cthe situation in hot spots around the world,\u201d apparently a reference to the Iran war and the war in Ukraine, both of which have restricted global energy supplies. The third factor, he said, is competition for capital from artificial intelligence companies.
Steve Kopack is a senior reporter at NBC News covering business and the economy.
Brian Cheung is a business and data correspondent for NBC News.
Kayla Steinberg is a producer at NBC News covering business and the economy.
© 2026 NBCUniversal Media, LLC<\/p>\n

source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

news AlertsThere are no new alerts at this timeThe Federal Reserve raised its benchmark interest rates for the first time since 2023 on Wednesday in a move aimed at slowing inflation that picked up again last month.The Fed\u2019s hike of 0.25% brings the central bank\u2019s flagship rate to between 3.75% and 4.00%. The Fed\u2019s policymakers […]<\/p>\n","protected":false},"author":1,"featured_media":224498,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-224497","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","entry"],"_links":{"self":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/224497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/comments?post=224497"}],"version-history":[{"count":0,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/224497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media\/224498"}],"wp:attachment":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media?parent=224497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/categories?post=224497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/tags?post=224497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}