Trump rips ‘hostile’ Fed board after interest rate hike but defends Warsh

President Donald Trump tore into the “hostile” Federal Reserve after the board voted on Wednesday to raise interest rates but held back criticism of Chairman Kevin Warsh, whom he tapped to lead the central bank earlier this year.Speaking with reporters in North Carolina, Trump was asked about the interest rate decision. The president said Warsh’s hands were tied due to the current state of the Fed.“No matter how good of a job, he’s got a hostile board,” Trump said of Warsh. The president was also asked about Warsh’s defense of the Fed’s monetary policy committee’s vote to raise its rate target by 0.25 percentage points to a range of 3.75% to 4%. The vote to raise rates was unanimous.During a press conference, Warsh defended the action as aimed at driving down inflation to aid a return to the committee’s 2% goal.“Inflation remains elevated. Today’s policy action will support a timelier return to the committee’s 2% goal. This committee will deliver price stability,” Warsh said.“I don’t know what he was referring to,” Trump said. “But I will tell you, interest rates are too high.”Trump has repeatedly urged the Fed to lower interest rates, but did not take Wednesday’s decision as Warsh’s betrayal. Following the announcement, Trump posted to Truth Social that rates should be as low as 1% but did not mention the chairman.Warsh stressed the Fed’s independence following the rate hike, but did not disclose any details about meeting with the White House.‘STAY IN OUR LANE’: WARSH VOWS FED INDEPENDENCE AFTER HIKING RATES“Part of the independence of the Federal Reserve is that we stay in our lane,” the chairman told the Washington Examiner. “Independence is a two-way street. We let people that do trade policy and fiscal policy stay in their lane too. That’s how we can stand up here and call them [the] way we see them.”While Warsh was not met with Trump’s ire, his predecessor, Jerome Powell, faced relentless pressure from the White House to lower interest rates. Powell was also appointed by Trump to lead the Fed.