Federal Reserve keeps interest rate at 3.6% despite Trump pressure
The Federal Reserve just decided to keep interest rates at 3.6%, even though President Trump wanted them lowered.
After two days of debate, most officials voted to stick with the current rate, while a few pushed for a hike to fight inflation, which has stayed above the Fed's 2% target for years.
Kevin Warsh highlights inflation drivers
Fed Chair Kevin Warsh (appointed by Trump) says tackling inflation isn't easy: "We have no magic wand," he admitted, stressing the need for open discussion.
Inflation is being fueled by things like Trump's tariffs, higher energy costs because of the war with Iran, and big spending in tech on AI.
Some Fed members are worried prices will keep rising. Meanwhile, the 10-year Treasury yield had already risen to 4.64%, hinting at more challenges ahead for the economy.