Trump Criticizes Fed Rate Hike, Reveals He Told Warsh ‘Vote With The Board’

President Trump reacted sharply to Wednesday’s Federal Reserve rate hike, saying US interest rates should be at 1% or lower and revealing he had spoken with Fed Chair Kevin Warsh ahead of the vote about how to handle it.

Trump Discloses Conversation With Fed Chair

Speaking to reporters Wednesday evening, Trump said he told Warsh he might as well vote with the rest of the board since his individual vote wouldn’t change the outcome. The Federal Open Market Committee voted unanimously to raise rates by 25 basis points, marking the first hike in three years and the first under Warsh’s leadership. Trump’s comments followed his earlier Truth Social posts arguing rates should be falling because of the trade deficit, and came days after he threatened to halt trade with countries running a trade deficit with the US unless the Fed cut rates.

When asked later if he still trusts Warsh, Trump said he does, but added that Warsh faces a very tough board and described the FOMC as a group of politicians. Senior Deputy Press Secretary Kush Desai echoed that frustration, telling Fox News the decision was unfortunate and lacked a compelling economic justification.

Warsh Pushes Back on Political Pressure

At his own press conference, Warsh declined to discuss any conversation with the president, saying he had nothing to share on that front. He described central bank independence as a two-way street, saying the Fed stays focused on its own role and expects those handling trade and fiscal policy to do the same. Despite the pressure, the Fed signaled one more rate hike is likely before year-end, pointing to ongoing concerns about price pressures.