- The Federal Open Market Committee voted unanimously to raise interest rates by a quarter-point, with Chair Kevin Warsh citing inflation stuck above the Fed's 2% target.
- The decision came despite repeated public urgings by President Trump and his administration to cut or at least not hike rates, renewing attention on the relationship between the White House and the independent central bank.
- Warsh declined to answer a reporter's question about whether he had a message for Trump, saying he had nothing on a discussion with the president.
- White House spokesman Kush Desai said on Fox News that the rate hike was not backed by a particularly compelling economic case from the administration's point of view.
- Trump in 2025 attempted to fire Fed Governor Lisa Cook; the Supreme Court blocked that action, and last month Trump restarted the process of firing Cook.
Quotes
“I've got nothing for you on a discussion with the president.”
“Certainly today's rather unfortunate decision by the Federal Reserve to hike interest rates was not, from the administration's point of view, backed by a particularly compelling economic case”