Trump Expresses Support for Rate Cuts After Fed Holds Steady at 3.5-3.75%

President Trump stated he knows what Federal Reserve Chair Kevin Warsh wants to do and expressed support for interest rate cuts. The comment came after the Fed held rates steady at 3.5-3.75% during Warsh's first policy meeting on June 17, 2026. Inflation is currently running above 4%. Trump has publicly advocated for lower interest rates, stating his desire for the 'lowest interest rate in the world.' The Fed's decision to maintain current rates occurred against a backdrop of persistent inflation well above the central bank's 2% target.

Trump Nominated Warsh on March 4, 2026

Trump nominated Warsh on March 4, 2026. The new chair was sworn in on May 22, 2026, replacing Jerome Powell. Warsh has signaled a commitment to bringing inflation back down to the Fed's 2% target. Warsh served as a Fed governor during the 2008 financial crisis.

Fed Held Rates Steady at 3.5-3.75% on June 17, 2026

The Federal Reserve held rates steady at 3.5-3.75% during Warsh's first policy meeting on June 17, 2026. Economists are currently speculating that Warsh could oversee aggressive easing of up to 100 basis points over the course of 2026, which would bring the target range down to 2.5-2.75%. The Fed's dual mandate is price stability and maximum employment.

Bitcoin Dropped to $64,800 After Fed Rate Decision

Bitcoin dropped to approximately $64,800 after the Fed held rates steady. The cryptocurrency then stabilized near $65,300. The crypto market's reaction to Warsh's first rate decision was swift.

Inflation Running Above 4% as Fed Maintains Policy

Inflation is stubbornly running above 4%. The Fed's 2% target remains the stated goal. Cutting rates while inflation runs at double the target would essentially mean abandoning half the mandate, according to the source article.

FAQ

What did the Fed do on June 17, 2026?
The Federal Reserve held interest rates steady at 3.5-3.75% during Chair Kevin Warsh's first policy meeting on June 17, 2026.

When was Kevin Warsh sworn in as Fed Chair?
Kevin Warsh was sworn in as Federal Reserve Chair on May 22, 2026, after being nominated by President Trump on March 4, 2026. He replaced Jerome Powell.

How did Bitcoin react to the Fed's rate decision?
Bitcoin dropped to approximately $64,800 after the Fed held rates steady, then stabilized near $65,300.