Fed Raises Rates for First Time Since 2023 as Inflation Fight Intensifies

The Federal Reserve raised interest rates on Sept. 16, marking its first increase since 2023. The move reflects sustained pressure from above-target inflation and signals additional tightening may follow.

Patrick Harker, former Philadelphia Fed President, said the central bank must demonstrate credibility to guide inflation back to 2 percent. Harker predicted another rate hike could occur in December.

Roger Ferguson, former Federal Reserve Vice Chairman, cited ongoing inflation, solid economic growth and elevated Treasury supply as factors supporting the rate increase.

Jeffrey Roach, chief economist for LPL Financial, characterized the Fed's accompanying economic projections as containing hawkish signals, suggesting near-term rate increases remain possible.

President Donald Trump has called for U.S. interest rates of 1 percent or less, positioning himself at odds with the Fed's current tightening trajectory.

Fed Chair Kevin Warsh recently reaffirmed the central bank's independence at the Jackson Hole Economic Policy Symposium, declining to weigh in on artificial intelligence regulation.

Patrick Harker, former Philadelphia Fed President, said the central bank must demonstrate credibility to guide inflation back to 2 percent. Harker predicted another rate hike could occur in December.

Roger Ferguson, former Federal Reserve Vice Chairman, cited ongoing inflation, solid economic growth and elevated Treasury supply as factors supporting the rate increase.

Jeffrey Roach, chief economist for LPL Financial, characterized the Fed's accompanying economic projections as containing hawkish signals, suggesting near-term rate increases remain possible.

President Donald Trump has called for U.S. interest rates of 1 percent or less, positioning himself at odds with the Fed's current tightening trajectory.

Fed Chair Kevin Warsh recently reaffirmed the central bank's independence at the Jackson Hole Economic Policy Symposium, declining to weigh in on artificial intelligence regulation.