Trump slams Fed chair he appointed over interest rate hike

President Donald Trump harshly criticized Federal Reserve Chair Kevin Warsh, who he himself appointed to the position, following the Federal Reserve's decision to raise interest rates despite his pleas for lower borrowing costs, according to Reuters' report on September 16. In a statement on social media platform Truth Social, Trump demanded the Fed slash interest rates as low as 1% due to the nation having the best credit in the world. He urged to lower interest rates for the United States of America, and fast.

However, Trump later stated that he still trusts Warsh and had discussed the matter with him. Trump mentioned that the board seemed very hostile and politically motivated, choosing the wrong course of action. Warsh has not yet confirmed if the conversation took place.

The Federal Reserve raised rates by 0.25 percentage points, reaching 3.75%-4%, despite pressure from the White House. Warsh described the decision as sober, serious, and responsible, stating that inflation in the US remained too high. He emphasized that inflation has been persistently high for too long, and further rate hikes were likely. The Fed's new projections indicate that 16 out of 18 central bank officials expect at least one more 0.25-percentage-point increase before the end of 2026.

Trump connected the U.S. trade deficit to interest rates, arguing that the country carries almost every country in the world in debt, a situation he believes cannot continue. The White House publicly pressured the Fed to maintain rates unchanged, while a former official suggested Trump's recent post was a restrained response to the broader pressure campaign.

Warsh, appointed in January to replace Jerome Powell, emphasized the Fed's commitment to maintaining monetary policy independence and was prepared to raise the benchmark rate if inflation data proved high during September's meeting.