Warsh Defies Trump with Surprise Interest Rate Hike

Federal Reserve Chair Kevin Warsh sided with markets over President Donald Trump to hike interest rates by 0.25%.

The decision, made unanimously by all board members, is seen as a move towards achieving price stability on a timelier basis.

Warsh explained that his judgment remains unchanged since he spoke at Jackson Hole, where he stated 'trends matter.' He said he's seen no new information to change his opinion on the inflation trends not passing the test.

The hike has already drawn criticism from allies of Trump, with National Economic Council Director Kevin Hassett saying the White House will respect the process. Sen. Bernie Moreno expressed disappointment and concern that the rate hike won't lower gas prices.