Trump Criticizes Fed Chair Warsh Over Recent Rate Hike
President Donald Trump has publicly criticized his newly appointed Federal Reserve Chair, Kevin Warsh, following a recent interest rate hike. On September 16, 2026, the Federal Open Market Committee (FOMC) voted unanimously to raise the federal funds target rate by 25 basis points. In an interview, Trump subtly blamed Warsh for not opposing the rate hike, stating, "I don't blame Kevin Warsh. I probably would have voted against the board if I were him."
Trump had previously expressed support for Warsh, contrasting him with the other 11 FOMC members. However, the president's policies, particularly his tariffs and the ongoing Iran war, have contributed to rising consumer prices and inflation. These factors have made rate cuts unlikely until after the conflict ends.
The Iran war has disrupted global energy supply chains, causing fuel prices to soar. U.S. diesel prices reached a record $6.53 per gallon, up from $3.69 a year earlier. The war's broader economic impact, including rerouted shipments and altered supply chains, has further fueled inflation, leaving the Fed little choice but to raise rates aggressively.
Trump's tariffs have also played a role in lifting consumer prices by increasing production costs for imported goods. Despite his criticism of the Fed, Trump maintains confidence in Warsh, relying on him to navigate the economic challenges ahead.