President Donald Trump said he still has confidence in Federal Reserve Chair Kevin Warsh, while calling for U.S. interest rates to fall to 1% or lower. His comments came just hours after the Fed raised its benchmark rate by 25 basis points to a range of 3.75% to 4%, its first rate increase since 2023.
Warsh, who was nominated by Trump, defended the increase as appropriate. Trump said he wants Warsh to remain independent but accused the Fed board of being “very political” and claimed its rate decisions were intended to hurt his administration. The comments have renewed questions about the Fed’s independence from the White House.
Trump also repeated his demand for faster rate cuts on Truth Social, arguing that the U.S. should have much lower borrowing costs because of its economic strength. Meanwhile, the Fed said inflation remains elevated, and updated projections suggest another rate increase could be possible. Trump has continued to pressure the central bank despite earlier assurances from his administration that the Fed should remain independent.
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