Arabic version: رفع وورش للفائدة يحيي جدل استقلالية الاحتياطي الفيدرالي

According to Cnbc, Federal Reserve Chairman Kevin Warsh joined a unanimous Federal Open Market Committee vote to raise interest rates by 25 basis points, despite repeated calls from President Donald Trump and administration officials for lower rates. The decision lifted the Fed’s target range to 3.75%-4%.

Warsh said inflation remained above the central bank’s 2% target and described the increase as a “responsible decision.” He made no reference to politics at his press conference and declined to discuss conversations with Trump. After the decision, Trump said he retained confidence in Warsh, calling him “a good man,” while saying rates should be 1% and criticizing what he called a “hostile board.”

The vote renewed scrutiny of the relationship between the White House and the independent central bank. Trump selected Warsh to lead the Fed in January after becoming dissatisfied with former Chair Jerome Powell. Trump had criticized Powell over a half-point rate cut in September 2024, while Powell said he based decisions only on economic conditions.

The administration has argued that the Fed should not intervene in the economy ahead of midterm elections, though the historical record does not strongly support that view. Since 1994, the Fed has changed rates as close to or closer to elections in 1998, 2004, 2008, 2018 and 2022.

Trump could take further action involving Fed officials, including restarting an effort to fire Governor Lisa Cook, a move that would likely face court review. The Justice Department also closed an investigation into Powell pending a separate Fed inspector general inquiry, while an outside review of the 2023 Silicon Valley Bank failure could affect Fed Governor Michael Barr. Such steps could end what CNBC described as a tacit truce between the administration and the Fed.