President Trump criticized the Fed and the FOMC after the committee raised the federal funds rate by 25 basis points on September 16, calling the voting board 'very hostile' and 'very political'. Under former Chair Powell, the FOMC cut rates six times between September 2024 and December 2025, to 3.50%-3.75%, but Trump has repeatedly called for 1%. In a Time interview, Trump said he did not blame Warsh and that he probably would have voted against the board if he were Warsh, which the article reads as displeasure with Warsh's vote for rate hikes. Inflation has topped the Fed's 2% target for 67 straight months, reaching a three-year high of 4.2% in May, which the article attributes to tariffs and the Iran war; a New York Fed study estimates tariffs added 2.9 percentage points to consumer price inflation. Lower rates would also cut the cost of servicing the U.S.'s more than $40 trillion in total debt.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on fool.com ↗
Keywords
FedKevin WarshDonald Trumpinflationinterest rates
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 101.74 |
| Change that session | +0.11% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 759.85 |
| Change that session | -0.54% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 704.39 |
| Change that session | -0.01% |
XAU/USD
▲ Likely positiveRelevance: medium
| Market | Gold |
|---|---|
| Close on 10/23/2026 | 3,995.78 |
| Change that session | -0.72% |
PAXG/USDT
▲ Likely positivePAX Gold
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Real-world assets |
| Market cap | $1.8B |
| Close on 10/23/2026 | 4,003.77 |
| Change that session | -0.80% |
XAUT/USDT
▲ Likely positiveTether Gold
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Real-world assets |
| Market cap | $3.4B |
| Close on 10/23/2026 | 3,994.18 |
| Change that session | -0.89% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- President Donald Trump Just Threw Fed Chair Kevin Warsh Under the Bus, and Things Could Get Ugly for Wall Street
President Donald Trump publicly criticized Fed Chair Kevin Warsh and the FOMC after the Fed raised the federal funds rate by 25 basis points on Sept. 16, kicking off the fourth rate-hiking cycle of the 21st century. Trump said he still relies on Warsh but called the board “very hostile” and “very political,” and told Time he would probably have voted against the board if he were Warsh. The article argues that inflation has topped the Fed’s 2% target for 67 months, reaching 4.2% in May, and blames tariffs and the Iran war. A New York Fed study estimates tariffs added 2.9 percentage points to consumer prices, and the author suggests more criticism of Warsh is likely, which could be bad news for stocks.
- Fed Chair Warsh Avoids Speculation On Rate Hikes
Fed Chair Kevin Warsh said he would not speculate on future interest rate moves at the IMF and World Bank annual meetings in Bangkok on Friday, October 16, while stressing the Fed's commitment to price stability. The Fed raised its key rate to 3.9% in September, its first increase since 2023, as CPI inflation hit 3.7%, fueling speculation about further hikes. Warsh said the AI boom is probably the most important thing happening in the global economy and could fundamentally change monetary policy and the real economy, and a Fed task force will hold a public hearing in November on AI's impact on the labor market. Despite challenges, he remained optimistic the U.S. economy would come out stronger, even as the Fed's moves defied President Donald Trump's calls for rate cuts. The next rate meeting is scheduled for October 27 and 28, after a blackout period.
- Fed Chair Warsh Avoids Speculation On Rate Hikes
Fed Chair Kevin Warsh said on Friday, October 16, that he would not speculate on future rate changes at the IMF and World Bank annual meetings in Bangkok, while stressing the Fed's commitment to price stability. The Fed raised its key rate to 3.9% in September, its first increase since 2023, and CPI inflation rose to 3.7% that month, fueling speculation about further hikes. Warsh said AI is likely the most important force shaping the global economy, one that could fundamentally change monetary policy and the real economy, and a Fed task force will hold a public hearing in November on AI's impact on the labor market. He remained optimistic that the U.S. economy would emerge from the challenges stronger. The Fed's actions have defied President Donald Trump's calls for rate cuts; Trump backs Warsh but has criticized the rate-setting committee, and the next meeting is on October 27 and 28.
- Fed Chair Warsh Avoids Speculation On Rate Hikes | News Radio 1410 AM & 100 . 9 FM
Federal Reserve Chair Kevin Warsh said on Friday, at the IMF and World Bank annual meetings in Bangkok, that he would not speculate on future rate changes, reaffirming the Fed's commitment to price stability. The Fed recently raised its key rate to 3.9% in September, its first increase since 2023, as consumer price inflation rose to 3.7%. Warsh called the AI boom probably the most important development in the global economy, saying it could fundamentally change monetary policy and the real economy. A Fed task force will hold a public hearing in November on AI's impact on the labor market, and Warsh expressed optimism that the U.S. economy will come out stronger. The Fed's decisions have defied President Donald Trump's calls for rate cuts, although Trump supports Warsh while criticizing the rate-setting committee.
- Fed chair says price stability is key but shies away from rate signals
Federal Reserve Chairman Kevin Warsh said he won't prejudge the Fed's decisions at its October and December meetings, while reaffirming a commitment to price stability. The Fed raised its key rate by a quarter point to about 3.9% in September, its first increase in three years, and minutes show most officials expect another hike this year. Warsh said the AI investment boom is one factor behind elevated inflation and called the technology possibly the most consequential change to the economy in his lifetime. He spoke with IMF chief Kristalina Georgieva at a Bangkok meeting, and an AI task force meets on Nov. 16; the September hike also defied President Trump's calls for cuts.
- Fed Chair Warsh Avoids Speculation On Rate Hikes
Fed Chairman Kevin Warsh declined on Friday, October 16, at the IMF and World Bank meetings in Bangkok to speculate on future rate changes, reaffirming the Fed's commitment to price stability without hinting at decisions. The Fed recently raised its key rate to 3.9% in September, its first increase since 2023, as consumer prices rose 3.7%, fuelling speculation of more increases. Warsh called the AI boom probably the most important development in the global economy, saying it could fundamentally change monetary policy, and noted a Fed task force will hold a public hearing in November on AI's labor-market impact. He remained optimistic about U.S. resilience, while the Fed's moves have defied President Donald Trump's calls for cuts; the next meeting is set for October 27 and 28.
Related markets
Latest news
- Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?
Netflix (NFLX) shares have fallen roughly 50% from their all-time closing high of $133.91 on June 30, 2025, following the company's third-quarter report. Before the report, Netflix fired its chief content officer and announced its largest layoff since 2022, hiring former Disney executive Peter Rice as it struggled to produce U.S. blockbuster shows. In Q3, revenue rose 12% to $12.87 billion and adjusted EPS jumped 49% to $0.87, above the $0.82 analyst estimate compiled by LSEG. Netflix guided Q4 revenue to $13.4 billion but trimmed full-year revenue to $51.1 billion and cut its ad revenue forecast from $3 billion to $2.7 billion due to a slower ad rollout. The article argues that at a forward P/E of about 17 times 2027 estimates, the valuation now looks attractive.
- Police and protesters clash in Paris as demonstrations break out across Europe
Demonstrations took place in many European cities on Saturday, from Milan to Madrid, while in Paris clashes erupted near the march's endpoint at Porte de Vincennes, where police fired tear gas and used water cannons. The Interior Ministry put nationwide turnout at 410,000, including 110,000 in Paris, and police used tear gas in Lyon, Clermont-Ferrand and Strasbourg and water cannons in Nice and Nantes. Crowd estimates in Marseille differed sharply: police counted 17,000 while the CGT union said 100,000. Education Ministry figures showed 15.4 million teaching hours lost in the 2024-25 school year because absent teachers were not replaced, equal to 7.5% of scheduled time. The unrest is testing President Macron's authority before voters choose his successor in May, and the far-right National Rally has urged people to channel their anger into votes for it.
- U . S . Senate candidate Peltola calls the economy the only plot line that matters
Former U.S. Rep. Mary Peltola, a Democrat, has made the economy her top priority in her close race against Republican Sen. Dan Sullivan in Alaska, where spending has topped $100 million. She says rising prices for fuel, food, health insurance, utilities and rent are voters' main concern, and has said the Iran war should not progress in order to ease energy costs. Her proposals include eliminating income taxes for Americans earning less than $92,000 a year by raising taxes on the ultra-wealthy, increasing the Child Tax Credit and making Social Security solvent. Economists say Alaskans are feeling squeezed by record-high diesel and heating fuel prices, and Peltola cited a Selawik household with a $1,500 electric bill. Sullivan, who has backed the president's policies and argues he has cut taxes and expanded oil drilling, has an estimated net worth of $8.2 million, partly from holdings in RPM International.
- Abbott Laboratories vs . UnitedHealth : Does Health Innovation or Health Insurance Make for a Better Stock to Buy ?
The article compares Abbott Laboratories (ABT), a maker of medical devices, diagnostics and nutrition products, with UnitedHealth Group (UNH), which runs the UnitedHealthcare insurance arm and Optum health services. In FY 2025 Abbott's revenue rose about 6% to $44.3 billion, but net income fell to about $6.5 billion from $13.4 billion, largely due to a $385 million settlement. UnitedHealth's revenue grew nearly 12% to about $447.6 billion, while net income dropped to about $12.1 billion from $14.4 billion, a net margin of about 2.7%. Medicaid and Medicare premiums made up 44% of UnitedHealth's 2025 revenue, exposing it to government policy, while Abbott faces FDA oversight and debt from its $20 billion acquisition of Exact Sciences. Free cash flow was about $7.4 billion for Abbott and about $16.1 billion for UnitedHealth in FY 2025.
- Voters angry about high prices may get little relief from the next Congress
The article argues that voters expecting a new Democratic Congress to lower prices may be disappointed, since the main drivers of inflation are the Iran war's impact on energy prices, the AI boom and President Donald Trump's trade policies. Even if Democrats win control of the House and Senate on Nov. 3, they are unlikely to end the war or Trump's tariffs. Consumer prices are up 30 percent since the start of the pandemic, three times the increase of the prior six years, and over the past year they rose more than twice as fast as typical earnings, according to the BLS. Economists surveyed by Bloomberg expect inflation to slow to a 2.4 percent annual rate by fall 2027, but prices would still be rising from already high levels. Goldman Sachs expects leading hyperscalers including Alphabet, Microsoft and Meta to spend a combined $1.2 trillion in 2027, up from around $800 billion this year, while the federal budget deficit of almost $2 trillion also contributes to rising prices.
- Paraguay Joins Pax Silica , the US AI Supply Chain Pact
On 23 October, Paraguay became the 26th signatory of the US-led Pax Silica declaration, a pact to build AI and chip supply chains among trusted partners. Washington and Asunción pledged to use Paraguay's critical minerals and hydropower for AI infrastructure, tying the small ally to the US effort to reduce dependence on China. A separate 15-year power contract signed on 22 October covers up to 286 megawatts for an AI data centre at US$48.91 to US$56.39 per megawatt hour. No projects, deadlines, investments or companies have been named, and the declaration is a statement of intent rather than a treaty. The first 6 megawatts of data centre power are due on 1 December.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.