The Fed's decision to raise the rate angered Trump. What the media is writing

For the first time in three years, the US Federal Reserve has decided to raise the interest rate by 25 basis points, to 3.75-4%. Fed Chairman Kevin Warsh, who was appointed to this position on the initiative of US President Donald Trump, explained the decision by the need to cool the economy amid rising inflation. This caused dissatisfaction with the head of the White House, who demands lower rates, and he threatened that otherwise he would suspend trade with countries with which the United States has a trade deficit. How the world press reacts to the Fed's decision and Trump's position is in the "Izvestia" digest.

Associated Press: Fed rate hike is likely to lead to higher cost of credit cards and mortgages

On Wednesday, the Fed raised its benchmark interest rate by a quarter of a percentage point, the first increase since the summer of 2023. A rate increase is likely to make loans for housing, cars, and other goods even more expensive. But if someone is saving money, they will most likely earn a little more on interest. The rate hike increases the Fed's target range to 3.75–4.00%.

Inflation has remained above the Fed's 2% target for more than five years. The Labor Department reported on Friday that consumer prices rose 3.4% in August from a year earlier, while monthly growth quadrupled from July to 0.4%. The Fed's goal is to slow down consumer and business spending by raising borrowing costs, thereby reducing demand for homes, cars, and other goods and services, ultimately leading to a cooling economy and reducing upward pressure on prices.

Bloomberg: Fed raises rates to contain inflation, which displeases Trump

The Federal Reserve has raised the interest rate by a quarter of a percentage point and is planning another increase later this year. These measures are aimed at curbing inflation and will be a test for Fed Chairman Kevin Warsh in his relationship with President Donald Trump. After this decision, Trump wrote on social media that interest rates in the United States should be at 1% or lower, but did not criticize Warsh. Later on Wednesday, speaking to reporters, Trump said he had spoken with him and still trusted the Fed chairman.

The yield on two—year Treasury bonds, the most sensitive indicator of Fed policy, reversed the previous decline to 4.73%, which is more than 12 basis points higher than before the announcement. The yield on 10-year bonds rose during Warsh's press conference, also recovering from the previous decline, and eventually exceeded 5%.

The New York Times: Trump resumes attacks on the Fed after interest rate hike

On Wednesday, US President Donald Trump lashed out at the Federal Reserve over its decision to raise interest rates, repeating his previous threats to cut off trade with a number of countries if the central bank does not give in to its demands to reduce borrowing costs soon. The president again put forward his ultimatum, which caused confusion: he said that he could suspend trade with countries with which the United States has a trade deficit if the Fed does not lower the rate.

Such a move could cause huge damage to American families and businesses, and lowering the interest rate that Trump is seeking — to 1% or lower, according to him — could worsen inflation and further complicate the work of the central bank. In an attempt to get interest rates down, the president has constantly escalated his attacks on the Fed, and now he seems ready to use international trade to achieve the desired result in monetary policy.

BBC News: US interest rates raised for the first time in three years

The US Federal Reserve has raised interest rates for the first time in more than three years, and they may be increased again in an attempt to slow down price growth. At a press conference on Wednesday after the decision, Warsh noted that U.S. inflation has been above target "for more than five years." Because of this, fuel availability has become one of the main concerns of American voters, who have witnessed a sharp rise in gasoline prices in response to rising wholesale oil prices since the start of the US-Israeli war with Iran. This has also led to an increase in the cost of many goods and services.

Central banks tend to raise rates when inflation is high in order to lower costs and stimulate savings, in the hope that this will reduce the rate of price increases. But this is a balancing act, as higher rates may also encourage businesses to refrain from investing and harm economic growth.

The Wall Street Journal: The Dow Jones index fell by more than 600 points after the Fed raised its key interest rate

The Federal Reserve's decision to raise interest rates for the first time since 2023 led to lower stock and bond prices and provoked a possible escalation of tensions between Fed Chairman Warsh and President Trump. The Dow Jones Industrial Average fell 631 points, or 1.2%, after Warsh began his press conference at 2:30 p.m. ET. The S&P 500 index declined by 0.4%. The Nasdaq index fell by less than 0.1%.

Many investors expected the Fed's decision to raise interest rates after the escalation of the conflict in the Middle East led to higher oil prices and inflation expectations. Inflation has been exceeding the central bank's 2% target for more than five years. Some Fed officials have argued since April that it's time to raise rates to solve this problem.