President Trump on Wednesday sought to shield Federal Reserve Chair Kevin Warsh from criticism over the central bank's latest interest rate increase, instead directing his ire at the board members who voted unanimously for the move.
Speaking to reporters after landing in North Carolina, Trump said he still backs Warsh but described the broader Fed board as a difficult obstacle. “I’m relying on Kevin, but he’s got a very tough board,” Trump said. “He’s got a board that was put there by a lot of other people.”
The president went further, suggesting Warsh had little choice but to go along with the decision. “I told Kevin, I said, ‘You might as well vote with the board because it’s just not going to matter.’ The board is very hostile,” Trump continued. “They’re very political. They’re doing the wrong thing. They’re a bunch of politicians.”
The Federal Reserve announced its widely expected decision Wednesday to raise its benchmark interest rate to a range of 3.75 to 4 percent, the first such increase in three years. The move came despite intense public pressure from Trump, who has repeatedly called for lower rates to support economic growth.
“It’s shame because it’s too high an interest rate,” Trump said. “Despite that, the country’s barreled through everything because we’re doing so well. But the interest rates are too high.”
Earlier, the president had taken to Truth Social to rail against the hike, arguing that the U.S. should have a rate of “1 percent or less, because we are the Best Credit in the World – BY FAR.” He also floated an aggressive trade stance, writing, “If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year.” He added that the U.S. is “carrying” nearly every country and “that cannot go on any longer.”
Trump concluded his social media post with an emphatic demand: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
The board voted unanimously for the increase. In a statement, Warsh said the decision would “support a timelier return” to the Fed’s 2 percent inflation target, a rationale that directly contradicts the president’s push for cheaper borrowing costs.
The tension between Trump and the Fed has become a recurring theme of his presidency, with the president frequently breaking with tradition by publicly pressuring the central bank. His decision to single out the board while praising Warsh may be an attempt to preserve influence over the chair, but it also underscores the institutional rift. For more on the ongoing friction, see our earlier report on Warsh defying Trump on rates.
Economists note that the Fed’s independence is critical for market confidence, and Trump’s attacks have drawn criticism from both parties. Meanwhile, the president’s trade proposals, including the idea of halting trade with deficit countries, have raised concerns among allies and experts. As the administration continues to push its economic agenda, the clash over monetary policy shows no signs of abating.
