Federal Reserve Chairman Kevin Walsh raises interest rates by 25 basis points, former Federal Reserve Chairman Jerome Powell cuts interest rates by 50 basis points

After the Federal Reserve raised interest rates, JPMorgan Chase, KeyCorp, and Bank of New York Mellon raised their prime lending rate from 6.75% to 7%, with the new rate taking effect from Thursday local time.

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The three major stock indexes of the US continued to decline after the press conference of Federal Reserve Chairman Kevin Walsh, with the S&P 500 index falling 1%, the largest decline since July 29th, the Dow Jones Industrial Average falling 1.65%, and the Nasdaq falling 0.6%.

Two months before the 2024 election, the Federal Reserve led by former Federal Reserve Chairman Jerome Powell cut interest rates by 50 basis points when the core CPI was 3.3%; Two months before the 2026 midterm elections, Federal Reserve Chairman Kevin Walsh raised interest rates by 25 basis points when the core CPI was 2.4%. US President Trump chose Federal Reserve Chairman Kevin Walsh as chairman, but after taking office, Federal Reserve Chairman Kevin Walsh raised interest rates citing the strengthening US economy, high inflation, and geopolitical risks caused by the US crackdown on Iran.

[Federal Reserve Chairman Kevin Warsh's press conference concludes, lasting approximately 30 minutes] Federal Reserve Chairman Kevin Warsh's press conference has concluded, lasting approximately 30 minutes. (Source: Jin10)