The bank in the USA is the Fed. The Fed raises the rate for money. The rate goes up by 0,25 points. The new rate is between 3,75 and 4,00 percent. This is the first raise since the year 2023. The new boss is Kevin Warsh. He works there since May.
Inflation in the USA is very high. Inflation means: Money loses value. Everything costs more. The goal of the Fed is an inflation of 2 percent. In August the rate is 3,4 percent. A reason is the high price for energy. Energy costs more because of a war. The Fed wants stable prices with higher rates.
President Donald Trump wants lower rates. Kevin Warsh decides alone without the politics. The bank in Europe also raises the rates. Experts think about more raises this year. The USA has many new jobs now. This helps the economy. But inflation becomes more likely.
