The US Federal Reserve has raised interest rates by 25 basis points in an effort to address persistently high inflation, according to DW.
The increase is the first described in the supplied report as coming after a three-year period without a rate rise. The decision targets inflation that the source characterizes as stubbornly high in the US economy.
DW said the move was intended to tackle price pressures in the world’s largest economy. The source did not provide the new target range for the federal funds rate, nor did it include forecasts from Federal Reserve officials about future policy decisions.
The decision is also likely to create tension with President Donald Trump, who has called for lower interest rates, DW reported. The source did not quote a response from Trump or indicate whether the White House had issued a statement following the announcement.
The rate increase marks a policy choice aimed at restraining inflation, though the supplied material does not describe its expected effects on borrowing costs, employment, financial markets or economic growth. It also does not provide details about the inflation measures considered by policymakers or explain whether further increases are planned.