Sen. Elizabeth Warren (D-Mass.) and investor Peter Schiff questioned the Federal Reserve’s independence after President Donald Trump said he had instructed Fed Chair Kevin Warsh to vote with the board on its interest-rate increase, while Republican senators Mike Rounds, John Kennedy and Senate Majority Leader John Thune defended the central bank’s decision. The Federal Open Market Committee unanimously raised its benchmark rate by 25 basis points to 3.75%-4.00%, its first increase since July 2023, as inflation remained above the Fed’s 2% target. Trump said rates should be 1% or less and urged the Fed to cut them quickly. Kansas City Fed President Jeff Schmid and Warsh left open the possibility of further tightening, with 12 of 18 officials submitting projections anticipating one additional increase this year and four expecting two. Stocks initially fell after the announcement but the S&P 500 and Nasdaq rose 1.14% and 1.69%, respectively, on Thursday.