US Fed raises key rate for first time in 3 years

Economy By Deutsche Welle (DW) • September 16, 2026, 6:54 PM UTC

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US Fed raises key rate for first time in 3 years

In an attempt to address the persistently high inflation in the world's largest economy, the US Federal Reserve increased interest rates by 25 basis points.

Federal Reserve Chair Kevin Warsh had vowed to tackle inflationImage: Rod Lamkey/AP Photo/dpa/picture allianceAdvertisementThe US Federal Reserve (Fed) on Wednesday raised interest rates by 25 basis points in an attempt to tackle stubbornly high inflation in the world's largest economy.

This move is sure to anger President Donald Trump, who has called for lower rates and who recently nominated Kevin Warsh to the post of Federal Reserve Chair.

"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," Warsh told a press conference.

Warsh has served as Fed Chair since May and during his confirmation process, he had assured Congress that central bank policymakers would "have no tolerance for persistently elevated inflation."

The increase boosts the Fed's target rate to a range of 3.75% to 4.00%.

Original Source

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