Trump Faults ‘Hostile’ Fed Board for Interest-Rate Hike

Summary

President Donald Trump criticized the Federal Reserve board as hostile and very political after its unanimous rate hike, said he told Fed Chair Kevin Warsh he might as well vote with the board, and reiterated that the US should have the lowest borrowing costs in the world. Bloomberg's Tyler Kendall reports the comments will test the Trump-Warsh relationship and notes the US credit profile is pressured by an unsustainable debt trajectory. Warsh said the economy appears to be strengthening, and Trump has floated escalating trade policy if monetary policy is not eased, with midterms 47 days away.

• Trump blasted the Fed's unanimous rate hike and called the board hostile and very political.
• Trump said he told Fed Chair Kevin Warsh ahead of the FOMC meeting that he might as well vote with the board.
• Trump reiterated that the US should have the lowest borrowing costs in the world.
• Bloomberg's Tyler Kendall said the remarks will test the Trump-Warsh relationship.
• Warsh said the economy appears to be strengthening and cited an attitude of optimism on the board.
• Kendall noted US borrowing costs reflect a credit profile impacted by an unsustainable debt trajectory.
• Trump has floated escalating trade policies if monetary policy is not eased, with midterms 47 days away.