Fed chair addresses inflation and says central bank’s job is ‘to deliver stable prices’ | Federal Reserve
US politics | The Guardian — 2026-08-28 10:48:00 — www.theguardian.com
Donald Trump Pressures Federal Reserve to Cut Interest Rates Despite Inflation Risks
Donald Trump has continued to insist that the Federal Reserve should lower interest rates, putting him at odds with the central bank’s current approach to fighting inflation. This stance comes as Federal Reserve Chair Kevin Warsh emphasized the Fed’s responsibility to deliver stable prices and signaled that interest rates may rise in the coming months.
Trump’s repeated calls for rate cuts persist even as economists warn that such a move could further exacerbate inflation, which remains above the Fed’s 2% target. After US inflation hit a three-year high of 4.2% in May, it cooled to 3.4% in July—still 1% higher than the previous year’s figures. Warsh described progress on inflation as “modest,” noting that recent improvements in price readings do not reflect meaningful changes in underlying trends.
Trump’s aggressive push for lower rates stands in contrast to the Fed’s cautious approach, as the central bank navigates economic pressures stemming from higher oil prices and global instability. The Fed’s decision-making has become more contentious, with a notable split among board members at the last meeting over whether to raise rates further.
Despite these economic challenges, Trump’s position remains clear: he wants the Fed to cut rates, a move that experts say could undermine efforts to control inflation and stabilize the economy. As the debate continues, the White House’s pressure on the Fed highlights the ongoing tension between political demands and economic realities.
In summary, Trump’s insistence on lower interest rates, despite warnings from economists and the Fed’s own assessments, underscores a significant divide over how best to manage the nation’s economic future.
Source: https://www.theguardian.com/business/2026/aug/28/kevin-warsh-federal-reserve-inflation