Fed raises rates for first time since 2023 in unanimous decision
Central bank chair Kevin Warsh defies calls from Donald Trump to lower borrowing costs
Source: Financial Times
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DW NOTE
The Fed just raised rates into a supply shock that has already knocked 6% off global oil supply and sent Brent to $105. Warsh is tightening because Treasury yields hit 4.97% and he has no choice — not because the economy can bear it. Trump wants cuts because fiscal 2026 debt service is approaching $1 trillion annually at these rates. The Fed is now in the position of every central bank that let fiscal dominance run too long: damned if it cuts, insolvent if it doesn't.