Trump: Incredible That the Fed May Raise Rates This Year, Would Drag Down the Economy
N.R. Finch
The Fed held rates steady at 4.25%-4.50% for the fourth straight meeting. Trump called the dot plot's hint at possible hikes 'unbelievable,' warned it would drag on the economy, yet signaled fresh trust in new Chair Warsh.
What did the Fed actually decide?
The FOMC kept the federal funds rate target at 4.25%-4.50%, unchanged for a fourth consecutive meeting.
The vote was unanimous — no dissents.
This means → the Fed is in no rush to cut or hike. Choosing to do nothing is itself a statement.
What signal did the dot plot send?
The dot plot — a chart showing each Fed official's rate forecast — revealed that roughly half expect at least one hike this year.
In plain terms = the Fed held steady today, but nearly half its decision-makers think rates need to go higher, not lower. That runs counter to the market's hopes for cuts.
Trump called this signal "unbelievable" and said hikes would hold back the U.S. economy.
Where does Trump actually stand on rates?
On the hold itself, Trump told reporters in Paris it was "fine" and he "doesn't care" — a notably relaxed tone.
But on the dot plot's hint at hikes, he pushed back hard, warning it would hurt growth.
This reflects his real red line: no cuts he can live with; hikes he cannot.
What did he say about the new Fed chair?
Trump called new Fed Chair Warsh a "very good choice" and said he would rely more on his judgment.
That is a sharp contrast with his frequent public attacks on former Chair Jerome Powell.
This means → Trump's posture toward the Fed is shifting — from arm's-length pressure to open endorsement. The signal: he wants a cooperative relationship with the new chair, not a confrontation.
Content is for reference only, not financial advice.