Trump Blames Fed Board, Not Warsh, for Higher Rates
President Trump has clarified his stance on the recent interest rate hike by the Federal Reserve. In an interview with Time Magazine, he stated that he doesn't blame Fed Chair Kevin Warsh for the decision to raise rates by 25 basis points last month. The move was unanimous among all voting policymakers, including Warsh.
Trump had previously criticized former Fed Chair Jerome Powell for not cutting rates faster, nicknaming him 'Too Late' Powell. However, he expressed trust in Warsh, who he appointed, and instead blamed the central bank's 'board with Trump derangement syndrome'. He described the board as 'very hostile', pointing out that several members were brought on during the Biden and Obama eras.
The Fed's next interest rate decision is set for October 28. Currently, traders see a 64% chance of unchanged rates as the most likely outcome, according to the CME FedWatch tool. However, these odds have swung sharply over the past week, having been as low as 31.4% just a week ago.