Trump Defends Warsh Amid Rate Hike, Seeks Lower Interest Rates

President Donald Trump still expresses confidence in Federal Reserve Chairman Kevin Warsh despite the recent rate increase to 4%, the first since 2023. Trump justified the decision during a campaign event in North Carolina, stating that he relies on Warsh but notes that the central bank's board is 'very hostile' and 'political'.

The Federal Open Market Committee voted 12-0 to raise its key interest rate by 25 basis points, citing elevated inflation. Chairman Warsh emphasized that inflation has been 'too high for too long,' and the committee must ensure underlying inflation moves towards its 2% goal at a sufficient speed.

However, Trump continued to pressure the Fed to lower borrowing costs, advocating for interest rates to be slashed to 1%. He claimed on Truth Social that US rates should be 1%, or less, as the country is 'the Best Credit in the World' and has seen significant investment under his administration.