Fed hints at interest rate hike; Trump expresses trust in new Chair Warsh

Paris (Central News Agency) June 17: The US Federal Reserve announced today that it would maintain interest rates but predicted a potential single hike before the end of the year to curb inflation. President Trump labeled the situation 'incredible' but expressed full trust in the new Fed Chair, Kevin Warsh, whom he personally nominated.

According to reports, Chair Warsh, nominated personally by Trump, decided to maintain interest rates in his first policy meeting since taking office, although nearly half of the Fed officials believe a rate hike is necessary by the end of this year.

Former Fed Chair Jerome Powell was frequently criticized by Trump, who used insults like 'fool' or 'idiot' due to Powell's refusal to cut interest rates. Trump repeatedly argued that the central bank should cut rates to boost housing, stimulate the economy, and reduce government debt costs.

However, when asked about the decision to keep rates unchanged while in France, Trump showed none of that criticism, saying, 'It's okay, whatever.' When asked about the possibility of rate hikes, he said, 'This will only keep the national economy sluggish, which is highly unusual... but we have a great person there (at the Fed) now, so I will follow his wishes.'

Chair Warsh declined to comment on future rate trends at the post-meeting press conference and refused to disclose whether he had spoken to Trump since taking office, stating only that he had met with Treasury Secretary Scott Bessent several times.

Warsh stated, 'Regarding the President, I have nothing to say. As for the Treasury Secretary, he has always published photos of us having breakfast together, so... I don't think I can deny that,' noting that regular meetings between the Treasury and the Fed Chair have been a custom for years.