Bessent Stands by Warsh Amid Fed Rate Hike Despite Trump's Disagreement

Treasury Secretary Scott Bessent expressed confidence in Federal Reserve Chair Kevin Warsh after the Fed raised interest rates by a quarter point. The move was made despite President Trump's wishes, with some predicting another rate hike this year.

The 12-member FOMC voted unanimously to raise its benchmark interest rate to a range of 3.75 percent to 4 percent. Warsh cited persistent inflation as the reason for the decision, stating that 'the plain fact is that inflation is too high and has been for too long.'

Bessent noted that core inflation has been 'very quiescent,' but did not comment on whether he agreed with the Fed's decision to hike rates. Trump faulted the FOMC board, not Warsh, saying 'I'm relying on Kevin, but he's got a very tough board.'

The next FOMC meeting is set for late October and early December, with 12 of 18 panel officials predicting one more rate hike this year. Four officials forecasted two hikes, while two predicted consecutive holds.