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Trump spares Warsh from Fed criticism, demands rate cut
New York Times·US·about 19 hours ago
President Trump publicly criticized the Federal Reserve's interest rate hike, alleging it is designed to harm him politically. This escalates pressure on Fed independence and could influence market expectations of future policy, though the Fed's decision is likely based on economic data.
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The Federal Reserve has unanimously raised its key interest rate by 25 basis points to 3.75-4.00%, marking the first hike since 2023, due to persistent inflation. This hawkish move, signaling further tightening, directly contradicts President Trump's demands for rate cuts and has triggered a market selloff despite initial positive sentiment in Euro markets. The Fed's independence is under increased political pressure from the White House.