Trump says he told Fed chief to ‘do what you want’ ahead of interest rate hike

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1. 1h ago

   Trump Backs Fed Chief Warsh After Rate Hike

   President Donald Trump stated that he advised Federal Reserve Chair Kevin Warsh to do what you want before the central bank raised interest rates by a quarter point on Wednesday, September 16, marking the first rate hike since 2023. Despite publicly backing Warsh and telling him you might as well vote with the board, Trump slammed the decision and blamed a hostile board for the rate rise, while also demanding an interest rate of 1 percent or lower.

   Why it matters

   The Federal Reserve's unanimous decision to raise interest rates introduced a new phase of monetary tightening to check persistent inflation, prompting immediate friction from the executive branch. Trump's conflicting public stances, simultaneously expressing support for Warsh while criticizing the central bank, highlight ongoing political pressures facing monetary policy makers. Markets reacted positively to the adjustment with stocks rallying on Thursday as investors digested the policy shift.

   What is confirmed

   • President Donald Trump stated he told Federal Reserve Chair Kevin Warsh to do what you want ahead of an interest rate hike.
   • The Federal Reserve board unanimously voted to raise interest rates by a quarter point on Wednesday, September 16.
   • President Donald Trump stated he told Kevin Warsh you might as well vote with the board.
   • President Donald Trump demanded an interest rate of 1 percent or lower following the hike.
   • Stocks rallied on Thursday as markets digested the Federal Reserve decision.

   What to watch next

   • Additional statements from Federal Reserve officials regarding future rate tightening.
   • Market response to President Trump's demands for lower interest rates.
   Sources used for this update (12)

   1. CNBC — Trump demands 1% or lower interest rate after first Fed hike since 2023
   2. The New York Times — Trump’s Latest Threats Loom Over Fed’s Interest Rate Decision
   3. Yahoo Finance — Trump slams the Fed rate hike, says he told Warsh 'you might as well vote with the board'
   4. WSJ — Trump Says He Backs Warsh After Central Bank Raised Interest Rates
   5. The Washington Post — Trump says he told Fed chief to ‘do what you want’ ahead of interest rate hike
   6. cnbc.com — CNBC Daily Open: Trump bemoans hostile acts
   7. NBC News — Trump trashes Fed after first interest rate hike in 3 years
   8. The New York Times — Trump Looks Isolated on Interest Rates
   9. finance.yahoo.com — Trump backs Fed's Warsh following rate hike
   10. www.yahoo.com — President Trump Claims He Told Federal Reserve Chair ‘Do What You Want’ on Interest Rate Hike Vote
   11. www.afr.com — Trump says he still backs Warsh, blames ‘hostile board’ for rate rise
   12. newrepublic.com — Trump Tells North Carolina Hurricane Relief Depends on Midterm Outcome
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