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2026-09-17 09:10:09
[Navarro slams Fed rate hike as “bad decision”] (1) White House advisor Peter Navarro slammed the Federal Reserve’s first rate hike in three years on Wednesday, calling it “a bad decision.” The Federal Open Market Committee unanimously decided to raise the benchmark interest rate to 3.75% to 4%, with Chairman Warsh saying it would “support a more timely return” to the 2% inflation target. (2) Navarro said Warsh had told him there would be no rate hike and accused the Fed of being politicized under Warsh’s predecessor, Powell. He said, “I never thought Kevin Warsh was the right person… but it was a bad decision. If they raise rates about five days before the election, you know it’s political. They’re shameful.” He also said the rate hike would “take money out of your pocket,” leading to reduced spending by Americans and a slowdown in the economy. (3) When asked if Trump would deliver on his threat to cut off trade with countries with “trade deficits,” Navarro dodged the question, saying the president was “doing it for himself.” He said two things were certain: the Fed made a very bad decision; and the U.S. has a trade deficit with a bunch of cheaters and is cracking down on them, which is good for the U.S. He also claimed that the United States was in a "manufacturing boom" and that the working class was doing better under Trump's leadership. (4) Two hours after the Federal Reserve announced its decision, Trump posted on Truth Social demanding that the Fed keep interest rates at 1%. He wrote that if the United States stopped trading with every country with a trade deficit, it could earn at least $1.5 trillion a year; "trade deficit" is just a fancy way of saying "loss," and the United States is almost "supporting" the world, which cannot continue, and interest rates should be lowered quickly.
