Federal Reserve Raises Rates Despite Trump’s Objections

The Federal Reserve raised interest rates Wednesday for the fourth time this year. The Fed’s move to raise the borrowing rate by another 0.25 percent disregards calls by President Donald Trump to avoid making “another mistake” and “feel the market.” The president's repeated remarks have put his Fed chairman in an awkward position amid signs of economic softening and weeks of market volatility that have shaken the broad consensus that rates must go up. “The labor market has continued to strengthen and the economic activity has been rising at a strong rate,” the Federal Open Market Committee said in its policy statement. “Jobs have been strong.” Central bankers unanimously agreed under Chairman Jerome Powell to lift the federal funds rate, which controls the cost of mortgages, credit cards and other borrowing to a range of 2.25 and 2.5 percent. Interest rates have gone up seven times since Trump took office.