The US Federal Reserve has raised interest rates by 25 basis points to tackle inflation.
A majority of Fed policymakers expect at least one more rate hike to be necessary before the end of the year.
The Fed last raised rates in 2023, when the central bank was still battling post-pandemic inflation.
The Fed's Federal Open Market Committee voted unanimously on Wednesday, local time, to raise rates to between 3.75 and 4.00 per cent, citing "elevated" inflation and adding that the rate hike would support a "timelier return" to its 2 per cent target for the metric.
In a press conference after the rate hike announcement, Fed chair Kevin Warsh said the US economy had strengthened since the last Fed meeting, but the inflation trend had shown little improvement.
The US economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of Mr Trump's war on Iran, his signature tariff policies and the ongoing AI boom.
The Fed has held rates steady since January, choosing to wait to gauge the effects of energy price shocks and to let the impact of tariffs on prices ripple through the economy.
President Trump said rates should be 1 per cent or lower, and should be reduced quickly.
On Friday, August's consumer price index came in at 3.4 per cent, unchanged from the month before, but still well above the Fed's long-term 2 per cent target.
The Summary of Economic Projections raised its forecast for its preferred gauge of inflation, the Personal Consumption Expenditures price index, by 0.1 percentage points to 3.7 per cent by year's end.