Kevin Warsh's Bold Move Leaves Wall Street Speculating on Fed Rates
WHO:
CNN - Eric Rosengren, former president of the Federal Reserve Bank of Boston, commented on Trump's remarks, stating, “It’s an unusual and unfortunate comment to make. Clearly, the Fed chair does not need the president’s permission to raise rates.”
CNBC - Krishna Guha, vice chairman and head of economics and central bank strategy at Evercore ISI, noted that Warsh's decision was owned by him and that there was no evidence he was influenced by Trump.
CNN - Kevin Warsh, Federal Reserve Chairman
CNN - President Donald Trump
CNN - Eric Rosengren, former president of the Federal Reserve Bank of Boston
CNN - Krishna Guha, vice chairman and head of economics and central bank strategy at Evercore ISI
CNN - Tim Mahedy, CEO and chief economist at research firm Access/Macro
CNBC - Kevin Warsh, Federal Reserve Chair
WHAT:
CNN - Trump stated, “I talked to Kevin and I said you might as well vote with the board because it’s not going to matter…I said, ‘Do what you want because it doesn’t matter’ because he doesn’t have the votes.”
CNBC - Warsh described the rate hike as removing "a dose of accommodation," which has raised questions about future policy decisions.
CNN - The Federal Reserve raised interest rates for the first time in three years.
CNN - Trump suggested he gave Warsh permission to raise rates, calling it the “wrong” move.
CNBC - Warsh announced a quarter percentage point increase in the central bank's benchmark rate.
CNBC - Warsh described the rate hike as removing "a dose of accommodation."
WHERE:
CNBC - Federal Reserve headquarters in Washington
WHEN:
CNBC - The rate hike decision was announced on September 16, 2026.
CNN - The first rate hike occurred after three years of no increases.
WHY:
CNN - Trump's comments imply that Warsh was outnumbered on the rate-setting committee, leading to the rate increase.
CNN - Trump implied Warsh was outnumbered on the rate-setting committee, leading to the rate increase.
CNBC - Warsh stated the rate hike was possible due to a U.S. economy that appears to have "strengthened" and less restrictive financial conditions.
HOW:
CNN - Trump reached out directly to Warsh in the days before the Fed meeting, starting as a friendly catch-up before discussing the rate hike.
CNN - Trump communicated with Warsh before the Fed meeting, discussing the rate hike.
CNBC - Warsh's framing of the rate hike as removing "a dose" of accommodation suggests a potential for further rate increases.
(UPDATED September 18, 2026 23:00 UTC)
Trump recently made headlines with his remarks about the Federal Reserve, suggesting that a board member might as well vote with the majority since he believed it wouldn’t matter due to a lack of support. Eric Rosengren, the former president of the Federal Reserve Bank of Boston, called Trump’s comments “unusual and unfortunate,” emphasizing that the Fed chair does not require the president's permission to raise rates. Meanwhile, Krishna Guha from Evercore ISI clarified that the decision made by Warsh regarding the rate hike was his own and not influenced by Trump, who had reached out to Warsh prior to the Fed meeting to discuss the situation.
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(UPDATED September 18, 2026 22:01 UTC)
In a significant move, the Federal Reserve has raised interest rates for the first time in three years, with a quarter percentage point increase announced by Chairman Kevin Warsh at the central bank's headquarters in Washington. President Trump suggested he gave Warsh permission for this decision, calling it the “wrong” move while implying that Warsh was outnumbered on the rate-setting committee. Warsh explained that the hike was made possible by a U.S. economy that appears to have strengthened, indicating that further increases could be on the horizon.