Trump Says Fed Should Not Raise Interest Rates Ahead of Warsh’s First Meeting

President Donald Trump said the Federal Reserve would be wrong to raise interest rates, adding new political pressure before Kevin Warsh chairs his first Fed policy meeting this month.

Bloomberg reported that Trump said raising the benchmark rate would be “the wrong thing to do” and argued the central bank should lower rates. Barron’s separately reported that Trump said there was “no reason to raise interest rates.”

Warsh took office as Federal Reserve chair on May 22, and the Fed’s next policy meeting is scheduled for June 16–17. The current federal funds target range is 3.5% to 3.75%.

The economic stakes are direct. Lower rates can reduce borrowing costs and support growth, but inflation concerns remain. Reuters reported that the IMF urged caution ahead of the meeting, while Kansas City Fed President Jeffrey Schmid has described the Fed’s choice as patience or possible hikes to control inflation.

Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →