Fed Chief Defends Rate Decision Amid Midterm Buzz

Warsh held a news briefing after the Federal Open Market Committee kept rates unchanged. He said the decision had nothing to do with next week’s midterm elections. He added that he had not heard any political talk during his two days with his colleagues. The chair kept his answer brief and moved on.

Reporters brought up President Trump’s comments that interest rates should be lower. They also asked whether his colleagues on the committee were "political." Warsh declined to respond to quotes from public officials. He said he would not engage with the criticism. The questions kept coming, but he stayed tight-lipped.

A later question turned to a planned hearing by a White House panel investigating allegations against Fed governor Lisa Cook. Warsh said he knew nothing about any involvement from him or the Fed. He also faced a query about Trump’s effort to rename artificial intelligence as super intelligence. He replied that whether you call it AI or SI is up to you. He kept his answers short and avoided taking sides.

Warsh defended the steady rate, saying the goal is to bring inflation down to 2 %. He noted that the Fed had raised rates before the 2022 midterms, drawing criticism from Democrats. In 2024 the Fed cut rates, which then‑candidate Trump called a political move. This time the Fed did not change rates, and Trump later said he had not spoken to Warsh about the decision.