Trump Defends Fed's Rate Hike as Markets Rally
The US Federal Reserve's decision to hike interest rates was met with a mixed reaction from markets on Thursday.
While the move was expected, it was seen as a critical test of the central bank's independence. Analysts noted that stocks rallied after the announcement, suggesting uncertainty had faded.
US President Donald Trump criticized the decision, but stopped short of faulting Fed Chair Kevin Warsh. Trump cares less about any specific outcome than about winning, according to Semafor's Liz Hoffman, and he won by replacing Jerome Powell with Warsh.
Warsh had reiterated the central bank's independence on Wednesday, but Trump revealed that he spoke to him before the Fed's meeting. This has led some to speculate that Warsh may have been 'trying to foam the runway', as described by a Wall Street Journal columnist.