GOP Senators defend Federal Reserve’s decision

GOP senators rebuff Trump attacks on Federal Reserve

President Trump’s sharp criticisms of the Federal Reserve’s decision to raise interest rates are making some Republicans uncomfortable.

Trump declared that “Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR,” calling on the central bank to “LOWER THE INTEREST RATES … AND FAST!”

He later told reporters that he’s “relying” on Kevin Warsh , the Fed chair, to cut rates.

But the president gave him the greenlight to “vote with the board” since they had majority support for raising interest rates to between 3.75 percent and 4 percent .

Trump lambasted the other board members as “very hostile” and “very political.”

But Republican senators said the Fed members only followed their mandate to keep inflation in check.

“I have no problem with the Fed decision. I think the Fed exercised their independence, which is what we elect them to do, and I think the markets have responded accordingly,” Sen. Mike Rounds (R-S.D.) said, calling the financial markets “a true barometer of what’s going on.”

Stocks fell immediately after the Fed announced the rate hike but then surged on Thursday, with the S&P 500 Index and the Nasdaq rising 1.14 percent and 1.69 percent, respectively.

“That’s going to help the president long-term,” Sen. John Kennedy (R-La.) said.

“It may not be what he wants short-term but to have a Fed in which the market has confidence in their ability to look at the economy as a whole, that’s a very important thing for the president to have on his side long-term,” he continued. “The Fed did what they were supposed to do.”

Senate Majority Leader John Thune (R-S.D.) also defended the Fed’s action.

“They’re trying their best to ensure that they’re meeting their mission of keeping inflation at the rate that’s called for in their charter,” he said. “It’s always a bit of a judgment call but that’s the conclusion they came to.”

Though Thune acknowledged the rate hike “is not going to be helpful in terms of lowering costs in the near term.”

The Hill’s Alex Bolton has more on Republicans’ pushback to Trump’s attacks on the Fed and Supreme Court here .

Welcome to The Hill’s Business & Economy newsletter , I’m Julia Shapero — bringing you the latest on the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

A new review of the Silicon Valley Bank collapse found Federal Reserve supervisory staff “knew or should have known” about the institution’s vulnerabilities, Michelle Bowman, the Fed’s vice chair for supervision, said Friday.

A large share of Americans say President Trump is to blame for the current economic conditions facing the nation, including high inflation and affordability concerns, according to a new survey.

Sens. Rick Scott (R-Fla.) and Tammy Baldwin (D-Wis.) sent a letter Thursday to Federal Trade Commission (FTC) Chair Andrew Ferguson and FTC Commissioner Mark Meador surrounding alleged anticompetitive practices by Walmart and Amazon regarding “Made in the USA” products.

Warren Buffett announced Friday he will step down as chair of Berkshire Hathaway, the company he has led for more than 60 years.

Branch out with more stories from the day:

More than two-thirds of Generation Z thinks wealthy Americans should pay up.

Business and economic news we’ve flagged from other outlets:

Weeks before the midterms , almost everything is getting more expensive ( Wall Street Journal )

Why Europe really, really needs a mild winter ( New York Times )

Vice President Vance zeroed in on Iowa Democratic gubernatorial nominee Rob Sand during a rally in Council Bluffs on Friday, saying he is too far left to lead the state. Read more

A Wendy’s franchisee that operates 314 of the fast food company’s restaurants in 15 states announced Friday that it will be filing for bankruptcy. Read more

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