Trump spares Fed Chairman Kevin M. Warsh after unanimous rate hike

  • President Trump criticized Federal Reserve officials after Wednesday’s unanimous borrowing-cost increase.
  • Wednesday’s decision marked the first rise in borrowing costs in three years.
  • Kevin M. Warsh joined the vote after Trump had urged him to act independently.

President Trump criticized Federal Reserve officials after the central bank’s policy-making committee unanimously raised borrowing costs on Wednesday, the first such increase in three years. Trump spared Fed Chairman Kevin M. Warsh, whom he installed and had previously said should act independently, while directing his anger at other officials he described as hostile and political. The episode highlights the competing pressures on Trump and Warsh as they confront persistent inflation and a precarious U.S. economy. The Federal Reserve’s policy-making committee includes its seven-member Board of Governors, the president of the Federal Reserve Bank of New York and four rotating presidents from the other 11 regional banks.

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