Trump backs Warsh and criticizes Fed committee, FOMC sees rare policy divide in nearly 50 years

Odaily President Trump stated that Federal Reserve Chairman Kevin Warsh supports lower interest rates but is constrained by a "politicized committee" that has prevented rate cuts.

This week's FOMC meeting decided to keep interest rates unchanged with 9 votes in favor and 3 against, where three members publicly supported a 25-basis-point rate hike. This marks the first time since 2016 that three dissenting votes have been cast in the same direction, and represents a rare large-scale internal policy division during the early tenure of a new Fed Chair in nearly 50 years.

Warsh stated after the meeting that if inflation remains high and the job market stays robust, rate hikes could still be a policy option in the future, emphasizing that the Fed will not adjust policy based on market expectations.

The market currently views the September meeting as a key window to observe whether the Fed will reconsider raising interest rates.