Fed raises rates to 4% as Trump demands cut to 1%

The Federal Reserve, led by Kevin Warsh, voted to raise the federal funds rate by 25 basis points to a target range of 4%. Shortly after the announcement, Donald Trump publicly demanded that the rate be lowered to 1% or less. Analysts suggest this move may signal the end of the informal policy truce between the Federal Reserve and the White House, highlighting potential future conflicts over monetary policy.