Federal Reserve Defies Trump, Raises Interest Rates Amid Inflation Fears
President Donald Trump is likely frustrated after the Federal Reserve Board voted unanimously to raise interest rates on Wednesday, defying his demands for lower rates. The decision comes after months of Trump's attempts to pressure former Fed Chair Jerome Powell to lower rates, which included threatening him with criminal charges if he didn't step aside.
After Powell's term expired in May, Trump nominated Kevin Warsh, a GOP ally, to replace him. However, the new board voted to raise interest rates to combat inflation caused by Trump's own policies. Warsh acknowledged the decision and emphasized that 'inflation is too high and has been for too long.'
Trump had previously threatened to suspend trade with countries that have a deficit with the US unless the Fed lowered rates, but he didn't follow through after the meeting. Instead, he complained about interest rates on social media.
The decision by the Federal Reserve is seen as a blow to Trump's economic policies and may impact the upcoming midterm elections, which are expected to be closely contested.