3 articles · Updated · The New York Times · Sep 22
Summary
A unanimous Wednesday vote lifted the Fed’s key short-term lending rate, with Chair Kevin Warsh backing tighter policy despite President Trump’s calls for rates of 1% or less.
Persistent inflation above the Fed’s target and a bond-market selloff drove the move, after the 10-year Treasury yield hit 5% before the decision and stayed above that level afterward.
That rise in long-term yields is keeping borrowing costs elevated for home buyers and other borrowers, even though it remains unclear how much higher short-term rates can pull those yields down.
August unemployment at 4.1% points to a still-strong economy, underscoring why policymakers saw little room to ease even as political pressure for lower rates intensified.