President Donald Trump expressed confidence in Federal Reserve Chairman Kevin Warsh after the central bank increased borrowing costs. Trump described the Fed board as "politically hostile" and "very tough" while stating he is relying on Warsh to lead. He spoke directly with the chairman and urged him to remain independent of the board's current direction, adding that current interest rates remain too high.

The Federal Reserve raised its target range by 25 basis points to 3.75%–4.00% in a unanimous 12-0 vote, the first such increase since July 2023. This action occurred despite White House preferences for lower rates, including demands to cut them to 1% or lower. Chairman Warsh has previously countered political pressure by describing the central bank's independence as a "two-way street."