Warsh seeks to explain Fed interest rate logic to Trump

Kevin Warsh has a communication problem. The man President Trump hand-picked to lead the Federal Reserve, largely because he was expected to be sympathetic to the administration’s appetite for cheaper money, just voted to raise interest rates. On September 16, 2026, the Federal Open Market Committee raised the federal funds rate target range by 25 basis points to 3.75-4.00%. It was the first rate hike since 2023, and it landed like a brick in the Oval Office. The awkward dinner conversation Trump has made no secret of his preference for lower interest rates. He’s spoken directly with Warsh about the issue, pushing for cuts that would juice economic growth. He’s also publicly called the Fed’s rate decisions “very political.” Trump appointed Warsh as Fed Chair in May 2026 with the expectation that he’d be a more cooperative partner on monetary policy. Instead, Warsh walked into a situation where inflation has been running persistently above the Fed’s 2% target, energy prices are climbing due to geopolitical tensions (particularly the US-Iran situation), and the economic data pointed in one direction: tighter policy. Trump reportedly advised Warsh to “vote with the board,” a phrase th...