Trump Calls Fed Rate Hike 'Unfortunate,' Demands a Cut

Summary

The video covers the Federal Reserve's quarter-point rate hike under Chair Kevin Warsh and President Trump's criticism that rates should be 1% or lower. White House CEA Chair Chris Phelan argues the hike was a mistake because inflation is decelerating across CPI and PCE measures and says policy should be based on inflation, not GDP or labor-market strength. The discussion also touches on Fed independence, diesel and oil pass-through into prices, and the potential inflationary impact of proposed $5,000 dividend checks.

• Fed raised rates by 25 basis points for the first time in more than three years.
• Trump criticized the hike and said US rates should be 1% or less.
• CEA Chair Phelan called the hike a mistake, citing falling inflation.
• Phelan defended Fed independence while saying the administration can have opinions.
• Phelan said diesel and oil pass-through into inflation is lagged and hard to forecast.
• Phelan said $5,000 dividend checks would depend on Fed policy to avoid inflation.
• Phelan cited record-low poverty and record-high real household income.