Trump lashes out at Fed after Warsh backs rate hike; says rates should be '1% or less'

US President Donald Trump criticized Federal Reserve chief Kevin Warsh on Wednesday, expressing frustration over the central bank's decision to raise interest rates to combat persistent inflation. In a social media post on his platform Truth Social, Trump stated that interest rates in the United States should be 1% or less, as the country possesses the "best credit in the world—BY FAR."

He urged for lower interest rates for the United States of America, emphasizing that lower rates would benefit the nation. Despite later stating his continued confidence in Warsh, the president criticized the central bank's policies as "very hostile" and "political," claiming they were "doing the wrong thing." Trump also linked the Fed's rate hike to US trade deficits, implying that the central bank's decisions contribute to the country's financial burden.

The Federal Reserve unanimously raised rates by 25 basis points to 3.75-4.00 percent, with most policymakers anticipating further increases by the end of the year. Fed Chair Kevin Warsh defended the decision as a "sober, serious, responsible" choice to address high inflation.