President Donald Trump robbed the Federal Reserve after the central bank raised its benchmark interest rate for the first time in more than three years, but Trump spared Federal Reserve Chairman Kevin Warsh.
“Interest rates in the United States should be below 1% because America has, by far, the best credit in the world,” President Trump wrote on Truth Social on Wednesday. “Please lower interest rates in the United States quickly!”
The Fed unanimously voted to raise its target interest rate by 25 basis points to a range of 3.75% to 4.0%. The Fed said inflation remains high and that rising inflation would support an early return to its 2% target.
“The plain fact is that inflation is too high and has been there for too long,” Warsh said after the vote.
Trump said Wednesday before boarding Air Force One that he remains in agreement with Warsh, even though the chairman voted in favor of raising rates.
“I agree with Kevin,” he said. said. “He has a very tough board…the board is hostile and political. ”
Trump said he directed Warsh to vote with the rest of the board because opposing him would not change the outcome.
“I talked to Kevin and said it would be better if the board voted on it, because that wouldn’t be an issue,” Trump said.
President Trump continued to praise Warsh, calling him a “centerpiece” when he announced his nomination. At the time, President Trump said Warsh could be the best chairman in Fed history.
“I’ve known Kevin for a long time, and I have no doubt in my mind that he will go down as one of the great Fed chairs, and perhaps one of the best,” Trump said. “Above all he is ‘core casting’ and will never let you down.”
Trump similarly praised Jerome Powell when he nominated him to be Fed chair in 2017, but later attacked him over interest rates. playing cards called He claimed Mr Powell was a “real dummy” and a “stupid man” who was “causing great harm to our country”.
When Powell was first appointed, his rhetoric was dramatically different.
Trump says Powell is ‘strong, dedicated and smart’ said at that time. “And if confirmed by the Senate, Mr. Jay will bring his considerable talent and experience to lead our nation’s independent central bank.”
On Wednesday, President Trump’s stance on Mr. Warsh remained unchanged, but Sen. Elizabeth Warren (D-Mass.) appeared to soften her stance on the Fed chair.
During Warsh’s confirmation process, Warren called Mr. Warsh is Mr. Trump’s “sock puppet,” and Mr. Warsh claimed he had no intention of standing up to the president and would instead follow his orders.
But on Wednesday, Warsh took the following action against Warren: said It sent a signal to Wall Street that it was “committed to controlling inflation.” But Warren stopped We are far from fully accepting the chairman.
“Recovering a reputation takes a long time, not a single action,” she said.