The U.S. Federal Reserve unanimously raised the federal funds rate by 0.25% to 3.75–4.00%—the first increase since July 2023—to combat persistent inflation. Chair Kevin Warsh signaled further hikes ahead this year, though President Trump immediately called for cuts to 1% or below and threatened trade restrictions if the Fed does not comply. The baht weakened to 33.40 against the dollar following the rate hike and stronger U.S. dollar. Thai SMEs and financial institutions face headwinds from a stronger dollar, higher U.S. rates, and currency volatility; management of FX exposure and hedging strategies are increasingly critical.