US Fed hikes interests rates to curb inflation in move likely to rile Trump

The US Federal Reserve has increased interest rates by 0.25 per cent in an effort to curb persistent inflation. The central bank indicated that further rate hikes may occur later this year as part of its ongoing strategy to manage economic stability.

This policy shift comes amid a period of elevated inflation. Economic conditions are being shaped by a combination of factors, including the impact of tariff policies, the consequences of a conflict with Iran, and the effects of the artificial intelligence sector's growth. The move is expected to draw criticism from former President Donald Trump.