Trump Blasts Fed Board Over Rate Hike Despite Own Appointees' Support
President Donald Trump blamed the Federal Reserve board for raising interest rates despite his demands for cuts. He criticized the board, which includes three of his own appointees who voted for the increase. The Fed raised rates to bring down inflation that 'remains elevated,' according to its statement.
The benchmark rate is now at a range of 3.75% to 4%, significantly higher than Trump's desired level of 1%. Despite this, Trump expressed confidence in Fed Chairman Kevin Warsh, who he appointed, and maintained his support for him.
Trump has long been critical of the Federal Reserve, pressing it to cut rates throughout his second term. He even explored removing Jerome Powell as chairman before appointing Warsh to replace him in May. The renewed rate hike has sparked a rebound in U.S. stocks, with Treasury yields easing and the 10-year note slipping below 5%.