Trump backs Waller, slams the Federal Reserve Board; the FOMC faces rare policy rifts in the early tenure of its new chair, a scenario unseen in nearly 50 years.
2026.07.30 10:16:53
U.S. President Donald Trump said Federal Reserve Chair Kevin Warsh "wants to see lower interest rates" but was constrained by a "politicized committee" and thus failed to push for rate cuts. This week’s FOMC meeting voted 9 to 3 to hold interest rates steady, with three members publicly backing a 25 basis point rate hike. This marks the first time since 2016 that three dissenting votes aligned in the same direction, and a rare large-scale internal policy rift in the early tenure of a new Fed chair in nearly 50 years. Warsh reiterated after the meeting that if inflation remains elevated and the labor market stays robust, a rate hike could still be a future policy option, adding that the Federal Reserve will not adjust its policies based on market expectations. Markets currently widely view the September meeting as a key window to watch whether the Fed will resume rate hikes.
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