Trump Claims Fed Chair Wants Lower Rates, But Is Stymied by 'Political Board'

President Trump recently expressed his dissatisfaction with the Federal Reserve's decision to keep interest rates unchanged. He claimed that new Fed chair Kevin Warsh wants lower interest rates but is hamstrung by a 'political board.'

The Fed did leave rates unchanged, despite some speculation they might raise them by 25 basis points. However, three board members - Lorie Logan, Beth Hammack, and Neel Kashkari - dissented, advocating for a 25-bp hike.

Logan stated that she believed rates should be 'modestly higher.' Trump's comments suggest he is frustrated with the Fed's inaction on lowering interest rates, which he believes Warsh supports but cannot implement due to the board's influence.

The article points out that while the Fed doesn't set mortgage rates directly, monetary policy can impact them. The recent Quantitative Easing program contributed to record-low mortgage rates, but it's unlikely to be reinstated soon.

Trump chose Warsh as chair because he was dissatisfied with Jerome Powell's reluctance to cut rates quickly enough. However, Trump now implies that Warsh is facing similar challenges in implementing his desired lower interest rates.