Trump Administration Steps Up Pressure on Federal Reserve Ahead of September Rate Decision
The Trump administration has intensified its pressure on Federal Reserve Chair Kevin Warsh ahead of the September rate decision. President Donald Trump, Vice President JD Vance, Treasury Secretary Scott Bessent, and senior economic counselor Peter Navarro have all publicly called for the Fed to hold or cut interest rates.
Trump escalated the pressure by threatening to halt trade with countries running trade surpluses with the US unless the Fed cuts interest rates. Senior economic counselor Peter Navarro warned that a rate hike would be 'careless' and 'would hit precisely the sectors America needs to prosper most.'
The markets have priced in a roughly 60% chance of a quarter-point rate hike at the September meeting, but Warsh has maintained that White House pressure has had no impact on his decisions. However, The Wall Street Journal reported last month that Trump spoke with Warsh repeatedly.