Trump Blames ‘Hostile’ Federal Reserve for Rate Hike, Denies Rift With His Own Pick
Part of composite article Trump’s Midterm Meltdown: Court Losses, $5,000 Bribes, and a Fed He Called ‘Hostile’ View full article →
President Trump criticized the Federal Reserve’s decision to raise interest rates, calling the board “hostile” and saying it acted “only for political reasons.”
The rate increase, the first since 2023, was approved by a board led by Kevin Warsh, whom Trump himself appointed as chair.
Trump denied that Warsh had defied him by voting for the hike. He said he had advised Warsh to vote that way.
The president’s comments raise questions about the independence of the Federal Reserve, which is designed to make rate decisions without political pressure.
The rate hike and Trump’s response come ahead of the November midterm elections, adding economic policy to an already tense political season.