White House trade adviser Peter Navarro delivered a pointed warning to the Federal Reserve on Wednesday, urging the central bank to hold off on any interest rate increases. Speaking at The Hill’s Invest In America Summit, Navarro told moderator Betty Liu: “The message I want to send squarely to the Federal Reserve is don’t even think about raising interest rates now.”
Navarro’s remarks come as the Federal Open Market Committee prepares for its June 16-17 meeting—the first under new Fed Chair Kevin Warsh, who took over last month. The FOMC has held its benchmark rate steady at a range of 3.5 percent to 3.75 percent for three consecutive meetings, a decision that was backed by an 8-4 vote in late April.
The April meeting was the last chaired by Jerome Powell, who remains on the Fed’s board of governors while facing an inspector general investigation into his handling of office renovations. Navarro, a senior counselor to President Trump for trade and manufacturing, did not hold back in his criticism of Powell, labeling him the “worst” Fed chair in American history.
President Trump has long pushed for lower interest rates, frequently clashing with Powell over the pace of rate cuts. In December, before nominating Warsh, Trump said he wanted a Fed chief who would pursue “lower interest rates, by a lot.” The FOMC cut rates by a quarter point at each of its final three meetings last year, but Trump has argued those reductions were insufficient.
In an April interview with CNBC, Trump said he would be “disappointed” if Warsh did not cut rates immediately upon taking office. “We should have the lowest interest rate in the world,” Trump declared. However, Warsh has maintained that the president did not ask him to commit to any specific rate policy and has pledged to base his decisions on economic conditions.
Navarro’s latest broadside underscores the ongoing tension between the White House and the Fed over monetary policy. While Trump’s administration has touted strong economic growth and low unemployment, rising inflation—partly driven by disruptions in global energy markets, including Iran’s attacks in the Strait of Hormuz—has complicated the rate outlook.
The Fed’s independence has become a flashpoint in Washington, with some lawmakers defending the central bank’s autonomy and others echoing the president’s calls for easier money. As Warsh prepares to lead his first FOMC meeting, the pressure from the White House shows no signs of easing.
Meanwhile, Trump’s broader economic agenda includes pushing for new trade deals, such as the 16-year USMCA renewal under pressure from Canadian tariffs, and navigating foreign policy challenges that could spill over into domestic markets. With the next Fed meeting just weeks away, all eyes will be on whether Warsh charts an independent course or bends to political pressure.
