Trump Turns on Fed Board as Rate-Hike Risk Grows for Wall Street

Trump Fed criticism has intensified after the Federal Reserve’s September interest rate increase, with the president publicly questioning his own appointee, Chair Kevin Warsh, while insisting he does not personally blame him.

In an interview with Time, Trump called the Federal Reserve board very hostile and very political, according to reports of the interview. He added: I don’t blame Kevin Warsh. I probably would have voted against the board if I were him.

The remarks marked the first time Trump has publicly criticised his own appointee, having spent more than a year attacking the central bank and his predecessor, Jerome Powell, according to BigGo Finance. Trump has repeatedly demanded interest rates of 1 percent or lower, compared with the current federal funds target range of 3.75 to 4.00 percent.

The September hike that sparked the row

The Federal Open Market Committee raised its benchmark rate by 0.25 percentage points on September 16, bringing the target range to 3.75 to 4.00 percent, according to the Motley Fool. The increase followed six rate cuts under Powell between September 2024 and December 2025, which had lowered the range to 3.50 to 3.75 percent.

Warsh voted unanimously with the other 11 voting members for the hike, according to the Fool. Speaking to reporters on September 16, Trump said he still had confidence in Warsh but that the chair was outnumbered, saying the board was raising rates to make Trump do as badly as they could.

What markets expect next

Markets are pricing in a 64 percent probability that the Fed will increase its benchmark rate by at least 0.75 percentage points more by September 2027, according to CME Group’s FedWatch Tool cited by reports. Consumer inflation has exceeded the Fed’s 2 percent long-term target for 67 consecutive months and reached a three-year high of 4.2 percent in May, according to BigGo Finance.

Warsh himself has refused to prejudge the Fed’s October and December meetings, telling a Bangkok forum with IMF chief Kristalina Georgieva that the Fed had made very clear it would deliver price stability. The next decisions, due October 28, will test whether the public feud between the White House and the central bank deepens or cools.