White House Faults Fed Rate Hike as Trump Pushes for Deep Cuts

The White House on Wednesday pushed back against the Federal Reserve's decision to raise interest rates, describing the move as "rather unfortunate" as the central bank resumed tightening after a long pause.

The Fed earlier in the day lifted its target federal funds rate by 25 basis points to a range of 3.75 percent to 4 percent. It was the first increase since July 2023, with policymakers continuing to grapple with stubborn inflation.

White House spokesperson Kush Desai said the decision to hike rates lacked a particularly compelling economic case.

President Donald Trump also weighed in on social media, calling on the Fed to "lower the interest rates for the United States of America, and fast", and arguing that rates should be "one percent, or less".

It is not the first time the president has pressed the central bank to cut borrowing costs. Analysts noted that if the Fed keeps raising rates, the rift between the institution and the president could widen further.

Speaking at Wednesday's briefing on the rate decision, Federal Reserve Chairman Kevin Warsh restated his preference that the Fed refrain from offering forward guidance on its future policy path.

Asked whether he had any message for Trump, Warsh declined to comment, saying he "has got nothing" regarding a discussion with the president.