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The US Federal Reserve raised interest rates by 25 basis points to combat inflation, with policymakers anticipating further hikes this year. This move, influenced by rising fuel prices partly attributed to the war on Iran, aims to return inflation to a 2% target. Hong Kong's note-issuing banks maintained their lending rates despite the Hong Kong Monetary Authority adjusting its base rate in line with the Fed due to the currency peg. Meanwhile, China's domestic oil prices reached a record high following drone attacks in Saudi Arabia, and China's Foreign Minister expressed readiness to help resolve the Middle East conflict. The US House of Representatives passed a bill authorizing sanctions on major importers of Russian oil, including China and India.

The US Federal Reserve has raised interest rates by a quarter of a percentage point for the first time in three years, a unanimous decision by the Federal Open Market Committee. This action aims to combat stubbornly high inflation, which has reached 3.4 percent. The Fed's benchmark rate is now between 3.75 and 4 percent. This move will likely increase borrowing costs for consumers and businesses, potentially impacting demand and economic growth. The decision comes despite President Trump's repeated calls for lower interest rates, with Fed Chair Kevin Warsh stating inflation is "too high and has been for too long." Further rate increases are anticipated this year, with rates expected to remain stable through 2027.

Central bankers in the US, Japan, and the UK are set to make interest rate decisions this week amidst surging inflation and turbulent global bond markets. In the US, new Federal Reserve Chair Kevin Warsh faces pressure from President Trump to cut rates, but rising oil prices due to Middle East conflict are fueling inflation concerns, potentially leading to a rate hike. The Bank of England is expected to hold rates steady but may signal future increases due to stronger-than-expected economic growth and rising energy costs. In Japan, the Bank of Japan is widely anticipated to raise interest rates to combat deflation and support the yen, a move that US Treasury Secretary Scott Bessent indicated he has insight into. The European Central Bank also recently raised rates, citing inflation pressures from the Middle East conflict.

US President Donald Trump attempted to influence the Federal Reserve to lower interest rates. However, the Federal Reserve voted unanimously to raise rates instead. Following this decision, President Trump issued threats to end trade with Mexico and Europe. The article does not specify when these events occurred or provide further details on the reasons behind Trump's trade threats beyond their connection to the Fed's rate hike.

The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, marking the first increase in three years. This decision, made by the Federal Open Market Committee, aims to address elevated inflation and support a return to the Fed's 2 percent target. The rate hike brings the target range to between 3.75 and 4.00 percent. A majority of Fed policymakers anticipate at least one more rate hike before the end of the year. Federal Reserve Chairman Kevin Warsh stated that the central bank's primary focus is now on inflation.

President Donald Trump stated on Sunday that the United States should have the world's lowest interest rates, regardless of economic data. Speaking at the Irish Open golf tournament, Trump expressed his view ahead of the Federal Reserve's upcoming policy meeting. He argued that current interest rate levels benefit other countries at the expense of the US, despite recent inflation data showing the largest increase in four months. The Fed's meeting occurs shortly before midterm elections, and a rate hike could potentially impact voter concerns about affordability, as Trump's approval ratings have declined amid persistent inflation. Trump has previously criticized the Fed's interest rate policies.