The White House on Wednesday criticized the Federal Reserve's decision to raise interest rates, calling the move "rather unfortunate".
The Fed earlier in the day announced a 25-basis-point increase in its target federal funds rate, bringing it to a range of 3.75 percent to 4 percent, which marked its first hike since July 2023, as policymakers continue to battle stubborn inflation.
White House spokesperson Kush Desai said in a later interview responding to the move, that the "rather unfortunate decision by the Federal Reserve to hike interest rates" was not backed by a particularly compelling economic case.
President Donald Trump also weighed in on social media, urging the Fed to "lower the interest rates for the United States of America, and fast", adding that "interest rates in the United States should be one percent, or less".
It is not the president's first attempt to pressure the Fed into cutting rates. If the Fed continues to raise interest rates, the divide between the institution and the president could widen further, analysts noted.
Speaking at Wednesday's briefing on the rate decision, Federal Reserve Chairman Kevin Warsh reiterated his preference that the Fed would not provide forward guidance on the future policy roadmap.
Asked about any messages to Trump, Warsh declined to comment, saying that he "has got nothing" regarding a discussion with the president.
White House calls Fed rate hike "unfortunate" as Trump pressures for sharp cuts
