U.S. Treasury Secretary Scott Bessent said he and President Donald Trump have great confidence in Federal Reserve Chair Kevin Warsh after the Federal Open Market Committee unanimously raised the federal funds target range to 3.75%-4%, its first increase since 2023. Bessent declined to say whether he supported the hike, arguing that core inflation was subdued while headline inflation reflected elevated energy prices. August consumer prices rose 3.4% from a year earlier, excluding food and energy, while core inflation was 2.4% and energy prices increased 16.3%. Sixteen of 18 policymakers projected at least one additional rate increase this year, and the median year-end policy-rate projection rose to 4.1%. Bessent also said the 30-year Treasury yield had not surged after Treasury buybacks were expanded during a period of tight liquidity.