US President Donald Trump criticized the Federal Reserve’s decision to raise interest rates to combat inflation, then later said he still had confidence in Fed Chair Kevin Warsh. In posts on his social media platform, the White House chief railed against higher borrowing costs and called for sharp monetary easing, arguing that rates should be 1%, or less, given the country’s “flawless” credit record. He later softened his tone in remarks to reporters, stressing his continued support for the central bank’s leader.

The Fed’s move marked its first rate increase since 2023. Policymakers voted unanimously to lift the policy rate by 25 basis points to a 3.75%–4.00% range, in line with market expectations. Warsh described the decision as sober, serious, and responsible in the face of elevated inflation. The Fed noted that the economy is expanding at a healthy pace, investment remains strong, and job growth continues despite global turmoil.

The hike followed a period of policy calm: the rate was unchanged at five prior meetings after three successive cuts earlier. The Fed has two policy meetings left this year, in late October and early December. Trump’s public rebuke underscores the growing tension between the Fed’s tightening stance and Republican campaign messaging ahead of congressional elections, where higher borrowing costs have become a political flashpoint for businesses and voters.