‘In our lane’: Fed’s Warsh defies Trump but still fighting for credibility
The Fed on Wednesday raised US rates by 25 basis points to between 3.75% and 4%, with policymakers signalling at least one more rate hike before year-end.
Federal Reserve Chair Kevin Warsh raised the US interest rate by 25 basis points to between 3.75% and 4%, defying President Donald Trump but raising questions about his credibility. Trump has been hostile towards the Fed's independence, initiating a criminal probe into Warsh's predecessor and attempting to fire another Fed governor.
He frequently insulted and berated former chair Jerome Powell. However, Warsh's response to Trump's announcement of the rate hike was muted, with Warsh stating "that's part of the independence of the Federal Reserve - we stay in our lane." Warsh's decision to raise rates came seven weeks before the midterm elections, and economists praised his "steel in his spine."
However, questions about his independence remain, with some suggesting that Trump's influence may have played a role in the decision.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- ‘In our lane’: Fed’s Warsh defies Trump but still fighting for credibility freemalaysiatoday.com
- 'In our lane': Fed's Warsh defies Trump but still fighting for credibility koreatimes.co.kr
