- The Fed raised its target interest rate by 25bp to a range of 3.75%-4%, its first hike in three years, under new chair Kevin Warsh.
- Fed projections show 12 of 18 officials expect one more hike this year, while four expect two more, signaling a higher-for-longer path rather than a pause.
- President Trump called for rates of 1% or less and demanded the Fed "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!", putting him at odds with the central bank he reshaped.
- Trump did not insult Warsh, unlike his treatment of predecessor Jerome Powell, leaving the tone of the political pressure less confrontational than prior cycles.
Quotes
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR”
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
“The rate hike immediately puts Trump at odds with the central bank under new Fed chair Kevin Warsh, whom he picked to lead it.”