The Federal Reserve has raised interest rates for the first time since 2023. Kevin Warsh joined a unanimous decision to lift the benchmark range from 3.75 to 4 percent, which is actually less than the full half-point increase that had been rumored. Officials also signaled that another hike could follow before the end of December. Inflation remains stubborn, with oil prices and the artificial-intelligence investment boom adding pressure.
Donald Trump spent years demanding cheaper borrowing. He waited out Jerome Powell, threatened to kick Powell out, and finally put Warsh in his place after Powell’s term ended. Then Warsh raised the rates. Trump responded by declaring that interest rates in the United States should be 1 percent or less and demanding that the Fed lower them fast. He wasn’t in love with the decision, but he didn’t trash Warsh — at least not yet.
