Trump Tries to Influence Fed Decision, Says Rate Hike Won't Matter Anyway
US President Donald Trump has come under scrutiny for his comments on the Federal Reserve's recent interest rate hike. Speaking to reporters in Charlotte, North Carolina, Trump said he had told Fed Chair Kevin Warsh not to oppose the rate hike and that it would be better for him to vote with the board. 'You'd be better off voting with the board on this, it's not going to matter anyway,' Trump said.
Trump described Warsh as 'a good man' who 'works hard', but turned his fire on the Fed board itself, calling it 'very hostile, very political' and accusing it of 'doing the wrong thing'. The New York Times reported that Trump shielded Warsh from criticism, a sharp contrast to his attacks on former Chair Jerome Powell.
Experts are divided over how long the honeymoon between Trump and Warsh will last, with some anticipating further rate hikes. Sarah Binder, a political science professor at George Washington University, said Trump 'cannot escape the perception that he is still trying to interfere in Fed decisions.'