U.S. Federal Reserve hikes benchmark interest rate to 3.9% to combat high inflation

The Federal Reserve raised its benchmark interest rate by a quarter-point to about 3.9% on Wednesday, marking its first increase since 2023 to combat persistent inflation.

Fed Chairperson Kevin Warsh noted that the economy has gathered speed and that renewed U.S.-Iran combat, which drove up gas prices, convinced officials to support rate hikes.

President Trump reacted angrily to the decision in a social media post, renewing his demand for the central bank to lower interest rates quickly.