Huo Xing Finance reports that on July 30, U.S. President Trump stated that Federal Reserve Chair Kevin Warsh "wanted to see lower rates," but was constrained by a "politicized committee" and thus failed to push for rate cuts. This week’s FOMC meeting voted 9 in favor and 3 against to maintain interest rates unchanged, with three members publicly supporting a 25-basis-point rate hike. This marks the first time since 2016 that three dissenting votes aligned in the same direction and represents a rare, large-scale internal policy divergence during the early tenure of a new Fed chair in nearly 50 years. After the meeting, Warsh reiterated that if inflation remains elevated and the labor market stays strong, rate hikes could still be a future policy option, emphasizing that the Fed would not adjust policy based on market expectations. The market currently views the September meeting as a key window to observe whether the Fed will restart rate hikes.
Trump Supports Powell, Criticizes FOMC Over Rare Policy Disagreement
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Summary
On July 30, 2026, Trump endorsed Fed Chair Kevin Warsh, stating that Warsh supports lower interest rates but is opposed by the FOMC. The Fed voted 9-3 to hold interest rates steady, with three members advocating for a 25-basis-point increase. This marks the first time since 2016 that three dissenters have aligned on this issue. Warsh noted that rate hikes remain an option if inflation and the labor market remain strong. Market expectations will not dictate policy. Traders are closely monitoring the September meeting for a potential shift in funding rates.
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