Trump backs 'fantastic' Warsh while calling for lower rates and citing 'bad intentions' of other Fed officials - CNBC

What the report says

CNBC reported that President Donald Trump used remarks to reporters aboard Air Force One on Monday to praise Federal Reserve Chairman Kevin Warsh while criticizing other central bank officials over monetary policy. Trump described Warsh in highly favorable terms but said members of the Fed’s board were, in his view, politically motivated and suggested some may have “bad intentions.”

The comments came ahead of the Federal Open Market Committee’s next interest-rate announcement, scheduled two days later. According to CNBC, investors widely expected the Fed to leave rates unchanged, though market pricing via CME Group’s FedWatch tool still showed a smaller chance of a quarter-point increase. The Fed’s benchmark overnight rate is currently in a 3.5% to 3.75% target range, where CNBC said it has remained since cuts in the second half of 2025.

Trump argued that rates should come down and said the United States should have the lowest borrowing costs globally. He also claimed the economy could grow at much faster annualized rates if policy were easier. CNBC noted that several Fed officials have recently pointed to persistent inflation concerns, including Dallas Fed President Lorie Logan, who said rates should be somewhat higher.

The dispute matters because presidential pressure on the Fed can raise questions about central bank independence, especially when policymakers are weighing inflation risks against growth. CNBC compared the U.S. rate with lower policy rates in the euro area, Japan and China, while noting it is roughly similar to the Bank of England’s level.