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Trump says any Fed rate hike depends on the committee, not Warsh alone

Trump said Fed chair decisions are shaped by the broader FOMC voting committee, which requires majority support beyond the chair’s position.

Reported · Written up by our desk · Central Banks

Speaking in an interview with Punchbowl News, Donald Trump said a potential Federal Reserve rate hike is not solely tied to the views of the Fed chair, describing the chair as having a board that is “very political.”

Trump also emphasized that the decision would ultimately rest with the Federal Open Market Committee, where interest rate moves are set by majority vote rather than by the chair alone.

The voting members include the seven Board of Governors members, the president of the New York Fed, and four other regional Fed presidents who vote on a rotating basis. Each voting member casts an independent vote at policy meetings, meaning the chair cannot unilaterally raise or lower rates if other committee members do not align.

While Trump said he has confidence in the Fed chair and would not criticize him, the remarks sought to distance the chair, and any potential rate path, from being driven by Warsh alone.

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