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US President Donald Trump has claimed the Federal Reserve board’s decision to increase interest rates was driven by politics rather than economic judgment.
Trump made the accusation on Wednesday while speaking to reporters, saying the board was “hostile” towards him.
He defended Federal Reserve Chairman Kevin Warsh, whom he appointed earlier this year, but said other board members were deliberately working against him.
“He’s a good man, Kevin Warsh, but no matter how good a job, he’s got a hostile board,” Trump said.
“They’re raising the rates to make Trump do as bad as they can possibly do… So they’re raising that only for political reasons, and that’s a raise against Trump.”
The comments came after the Federal Reserve raised its benchmark interest rate by 0.25 percentage points to a range of 3.75 to 4 percent on Wednesday. It was the first rate increase since 2023 and the first policy move under Warsh’s chairmanship.
The Federal Reserve said persistent inflation was behind the decision, with Warsh stressing that price pressures remained elevated and that the central bank needed to move inflation towards its 2 per cent target.
Trump has repeatedly called for lower interest rates, arguing that borrowing costs should be reduced. His latest criticism adds to his longstanding tensions with the Federal Reserve over monetary policy.
Despite his criticism of the board, Trump said he still had confidence in Warsh.
The rate decision was made unanimously by the 12-member Federal Open Market Committee, according to reporting on the decision.
