President Donald Trump contacted Federal Reserve Chairman Kevin Warsh before the central bank's Wednesday decision to raise interest rates by 25 basis points. The conversation began as a friendly catch up before turning to the expected rate hike, after which Trump claimed to have blessed the decision. A senior White House official confirmed the outreach happened in the days before the Fed board met.

The truce signals a reset in a relationship where the White House previously treated the central bank as an adversary. Some observers describe the shift as a face-saving exercise, while others warn the stability may end if the Fed raises rates again. Concerns remain that the administration might attempt to remove officials if it believes they are obstructing Warsh's leadership of the bank.