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

Odaily Planet Daily News U.S. President Trump stated that Fed Chair Kevin Warsh supports lower interest rates but is limited by a "politicized committee" from pushing for rate cuts.

This week, the FOMC meeting decided to keep interest rates unchanged with a 9-3 vote, in which three members publicly supported a 25-basis-point rate hike. This marks the first time since 2016 that three opposition votes have been cast in the same direction, and it is also a rare large-scale internal policy divergence during the early tenure of a new Fed chair in nearly 50 years.

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

The market now widely views the September meeting as a key window to observe whether the Fed will reconsider rate hikes.