White House: Federal Reserve's interest rate hike decision is "regrettable"

The White House said the Federal Reserve’s decision to raise interest rates was “somewhat regrettable,” while a spokesperson for President Donald Trump told Fox News that the president still believes in the central bank’s independence.

The White House added that the rate hike “does not change oil prices.”

The Fed raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4%, marking the first increase since 2023, after keeping rates unchanged for five consecutive meetings. The central bank emphasized that inflation remains elevated and that the decision will help bring it back to its 2% target sooner.

The move comes in direct opposition to Trump’s desire to lower borrowing costs, after he reiterated his calls for U.S. interest rates to be the lowest in the world. He has also recently threatened to escalate his trade wars if monetary policy is not eased.

Federal Reserve Chair Jerome Powell said that inflation risks tend to be rising, while labor market risks appear balanced, affirming that the rate hike underscores the central bank’s seriousness in curbing inflation.