Fed Chair Warsh Says Politics Played No Role in Rate Hold, Defends Independence Amid Trump Pressure

Federal Reserve Chairman Kevin Warsh said Wednesday that politics played no role in the central bank's decision to leave its policy rate in the 3.75%-4.00% range, indirectly rebutting President Donald Trump's claim that the Fed Board is partisan. "I didn't hear an utterance about politics," Warsh told reporters after the two-day Federal Open Market Committee meeting, adding he is "honored" to lead the group. The hold came as elections on November 3 approach, with voters citing inflation and high borrowing costs as top concerns. Fed Governor Lisa Cook dissented, preferring a quarter-point hike. Trump has sought to fire Cook for over a year, with a possible White House administrative proceeding set for November 5. Asked whether he would be involved, Warsh said, "not to my knowledge." Treasury Secretary Scott Bessent said he and the president have "great confidence that Chair Warsh will steer the Fed between the right combination of growth and inflation." Warsh said incoming data will leave policymakers "better positioned" in December to decide on rates.