Fed hikes rates as federal net interest tops $1 trillion

(The Center Square) – The Federal Reserve raised interest rates a quarter point Wednesday, its first increase in three years, a unanimous move that came despite President Donald Trump's demands for cuts, with officials signaling more increases could follow this year.

The increase keeps short-term borrowing costs elevated heading into fall for credit cards and auto loans, and can put upward pressure on mortgage rates through its effect on longer-term Treasury yields. It also holds up one of the government's fastest-growing expenses: interest on the nation's debt.