Breaking
TRMother and father were arrested after the loss of 11-month-old Büşra BalıkçıBRRural worker is arrested on suspicion of stealing R$5,132 in cash hidden in his underwear in AcreTRUEFA Europa League 2026-2027 Season First Week Match Results AnnouncedTRRetired sergeant committed suicide after shooting his wife and son in Adana CeyhanCNApple iPhone 18 Pro series goes on sale tomorrow, three major telecoms push discounts to grab first saleTRTFF announced France match ticket salesINTrump Calls for Sharply Lower Interest Rates After Fed Rate HikeTRDrug Operation in Coordination of Manisa, Akhisar and Soma Chief Public Prosecutor's OfficesUKSpain extends Luis de la Fuente contract until 2032 after World Cup winCNUS prosecutors allege Huawei sought T-Mobile robot secrets in criminal trialTRMother and father were arrested after the loss of 11-month-old Büşra BalıkçıBRRural worker is arrested on suspicion of stealing R$5,132 in cash hidden in his underwear in AcreTRUEFA Europa League 2026-2027 Season First Week Match Results AnnouncedTRRetired sergeant committed suicide after shooting his wife and son in Adana CeyhanCNApple iPhone 18 Pro series goes on sale tomorrow, three major telecoms push discounts to grab first saleTRTFF announced France match ticket salesINTrump Calls for Sharply Lower Interest Rates After Fed Rate HikeTRDrug Operation in Coordination of Manisa, Akhisar and Soma Chief Public Prosecutor's OfficesUKSpain extends Luis de la Fuente contract until 2032 after World Cup winCNUS prosecutors allege Huawei sought T-Mobile robot secrets in criminal trial
Newsgather
All StoriesWorldSportsFinanceTechScienceHealthCultureClimatePoliticsSpace
BackThe Fed made its first interest rate increase since 2023; Trump repeats demand for low interest rates
The Fed made its first interest rate increase since 2023; Trump repeats demand for low interest rates
BREAKING
Cumhuriyet1 hour agoBusiness1 min readTürkiyeView original

The Fed made its first interest rate increase since 2023; Trump repeats demand for low interest rates

fedinterestinflation

Quick Look

  • The US Federal Reserve (Fed) increased the policy rate by 25 basis points to the range of 3.75-4 percent.
  • This was the first interest rate increase since 2023.
  • The FOMC decision was made by a vote of 12-0.

AI-generated summary

Why It Matters

The Fed had kept interest rates steady since late 2023 and expected inflation to head towards the target. However, recent data showed that inflation was still high, which led to an interest rate increase.

Font size

The US Federal Reserve (Fed) increased the policy rate by 25 basis points to the range of 3.75-4 percent. The decision was the Fed's first interest rate increase since 2023. The FOMC decision was made by a vote of 12-0.

The Fed cited high inflation as the reason for the decision. The bank stated that the interest rate increase will support returning inflation to the 2 percent target in a more timely manner.

INTEREST RATE REACTION FROM TRUMP

Following the decision, US President Donald Trump argued that interest rates should be much lower.

Trump said, "Interest rates in the USA should be 1 percent or lower. Lower interest rates for the USA, and quickly."

The interest rate increase brought to the fore again the difference of opinion between Trump's demand for lower interest rates and the Fed's approach to fighting inflation.

FIRST INTEREST DECISION OF THE WARSH ERA

In Kevin Warsh's first interest rate decision during his term as Fed President, the bank decided to increase interest rates, contrary to expectations. Warsh said that inflation was still high after the decision and that there was no meaningful improvement in underlying inflation trends during the summer months.

What to Watch

AI outlook — possibilities, not facts

  • There may be an additional increase in interest rates at the next meeting of the Fed

    Possible · Within weeks

Open Questions

  • Will there be another increase in interest rates at the Fed's next meeting?
  • How much support will Trump's interest rate demand find in Congress or the public?
  • When will inflation reach the target?

Related Topics

fed
PeopleDonald TrumpKevin Warsh
OrganizationsUS Federal Reserve (Fed)
PlacesUnited States
Topicsinterestinflationtrumpwarshfomcmonetary policy
This article was originally published by Cumhuriyet.

Related Stories

Fed President Warsh Emphasized that Inflation Risks Are Upward and the Interest Rate Decision Focuses on Price Stability
BREAKING·

Fed President Warsh Emphasized that Inflation Risks Are Upward and the Interest Rate Decision Focuses on Price Stability

In the press conference held after the FOMC's decision to raise interest rates by 25 basis points, Fed President Christopher J. Warsh stated that inflation has remained high and above the target for a long time, fundamental trends have not improved, and he focuses on price stability. He said that the risks in the labor market are balanced, that geopolitical developments affect the increase in bond interest rates and that he will not make predictions about future decisions.

AA Güncel
2 min read
Fed Raises Interest Rate by 25 Basis Points in September 2026
BREAKING·

Fed Raises Interest Rate by 25 Basis Points in September 2026

At the September 2026 meeting of the Federal Open Market Committee (FOMC), the US Federal Reserve (Fed) increased the policy rate by 25 basis points in line with market expectations and increased the target range from 3.50-3.75% to 3.75-4%. Economic activity is expanding at a solid pace, the unemployment rate is little changed and inflation remains high, the Fed said. According to projections, 16 out of 18 FOMC members expect another interest rate increase this year, but interest rate cut expectations are taking shape for 2028 and beyond.

Habertürk Ekonomi
2 min read
Tera Portföy announced default in two of its funds and changed the payment period in six of its funds
Developing·

Tera Portföy announced default in two of its funds and changed the payment period in six of its funds

Tera Portföy notified KAP that there was a default in participation fee refund payments in THF and TP2 funds. At the same time, it changed the unit share value calculation frequency in TLY, TMV, TMM, DOH, T3B and TRU funds to monthly and increased the payment period to T+10 business days. Tera Holding President Emre Tezmen made a statement after the liquidity squeeze, associating it with a speculative attack.

Cumhuriyet
3 min read
Tera Portfolio Management changed the return default in two funds, the unit share value calculation frequency and return periods in six hedge funds.
Developing·

Tera Portfolio Management changed the return default in two funds, the unit share value calculation frequency and return periods in six hedge funds.

While Tera Portföy Yönetimi A.Ş. announced that there was a default in the participation share refund payments in Tera Portföy Stock (TL) Fund and Tera Portföy Money Market (TL) Fund, it announced on KAP that it had re-determined the unit share value calculation frequency of six hedge funds as once a month and the refund periods as the tenth business day.

Habertürk Ekonomi
2 min read
Ministry of Treasury and Finance Financial Stability Committee to Meet Tomorrow, Three-Day Decline in Borsa Istanbul Accelerated
BREAKING·

Ministry of Treasury and Finance Financial Stability Committee to Meet Tomorrow, Three-Day Decline in Borsa Istanbul Accelerated

The Ministry of Treasury and Finance announced that the Financial Stability Committee will meet at 08.00 tomorrow. In Borsa Istanbul, the BIST 100 index recorded 5.54 percent on the day the three-day decline accelerated, and a circuit breaker was applied to many stocks on a share basis. Liquidity discussions in the market and global factors are evaluated.

Cumhuriyet
2 min read
More on this topicfed