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President Trump Defends Fed Chair Kevin Warsh as the Federal Reserve Holds Interest Rates Steady

President Donald Trump defended his newly appointed Federal Reserve chair, Kevin Warsh, following the central bank's decision to hold benchmark interest rates steady at 3.50% to 3.75%. While the administration announced that the president has been publicly pressuring the Fed to slash rates to make borrowing cheaper, the committee voted 9-3 to maintain the current levels. Three dissenting members favored a hike to combat persistent inflation. President Trump described Kevin Warsh as "fantastic" and noted that while the chair would prefer lower rates, he faces a "political board" that desires to keep them higher. Despite the president's personal preference for lower rates, the Federal Reserve remains cautious due to hot inflation and a steady job market. Market reactions were mixed, with long-term Treasury yields jumping as investors anticipated potential future hikes. The administration noted that the end of the Iran war will eventually reduce energy costs, which should pave the way for future rate cuts.

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