Trump Slams Fed Rate Hike, Wants Lower Interest Rates
US President Donald Trump has criticized the Federal Reserve's latest interest-rate increase, saying policymakers are 'doing it wrong'. The central bank unanimously raised borrowing costs for the first time since 2023 by a quarter-point to 3.75%-4%. Trump wants US rates around 1% or lower and described the wider Fed board as hostile and political.
He maintained confidence in Chair Kevin Warsh, who joined the 12-0 vote to raise the federal funds target range. Warsh defended the move publicly, calling inflation too high and saying recent readings had not convinced him that underlying trends had improved.
Trump repeated his preference for rates around 1% or below, putting his desired policy path far below the Fed's current setting. The Fed's decision mattered, but the language around it mattered more, with Warsh describing the increase as removing a degree of accommodation.