The US Federal Reserve has raised interest rates for the first time in more than three years, lifting its target range to 3.75%-4% to tackle persistently high inflation. The unanimous decision defied President Donald Trump, who had urged rapid rate cuts, highlighting tensions over the central bank’s independence and economic policy.

Fed Chair Kevin Warsh said inflation had remained above the Fed’s 2% target for more than five years, despite a strong jobs market and wider economy. Higher rates make mortgages, loans and credit cards more expensive, although they can improve savings returns; major banks raised their prime lending rate to 7%, while average 30-year and 15-year mortgage rates stood at 6.76% and 6.09% respectively.