Trump Humiliated By His Fed Chair's Public Snub

Photo Illustration by Thomas Levinson/The Daily Beast/Getty/Reuters President Donald Trump took a fresh economic hit on Wednesday when the Federal Reserve hiked interest rates for the first time since 2023.

The central bank’s decision came as Americans face higher costs, largely fueled by the president’s war with Iran and tariffs.

Hiking rates is the Fed’s key tool to combat inflation.

The committee decided to raise the rate by a quarter of a percentage point to between 3.75 percent and four percent.

“Inflation remains elevated.

Today’s policy action will support a timelier return to the Committee’s 2 percent goal,” the statement read.

The move could spark tensions between Trump and his hand-picked Federal Reserve Chair Kevin Warsh, who assumed the job in May.

Trump has spent most of his first year in office attacking former Chair Jerome Powell for not bringing down the federal funds rate as fast as he wanted.

The last time the rate was cut was under Powell last December.

This year, the rate has been held steady in the target range of 3.50 percent to 3.75 percent as the Fed monitored the state of the U.S. economy.

But that is about to change.

The Fed has not hiked interest rates since July 2023 when Joe Biden was president.

It then began cutting rates in 2024 while Biden was still in office.

The first Federal Open Market Committee (FOMC) meeting under Warsh took place in June.