President Donald Trump said he would have retained former Fed Chair Jerome Powell if he had known markets would climb following a boost in borrowing costs. The comment follows a surge in stocks after the Federal Reserve raised interest rates by 25 basis points to a 3.75% to 4% range on Sept. 16. This action, decided by a unanimous 12-0 vote, ended a rate pause that began in July 2023.

The shift in tone follows a demand from Trump that U.S. rates be cut to 1% or less to reflect the nation's credit strength. Current Fed Chair Kevin Warsh defended the central bank's autonomy in response to political pressure, stating that independence is a two way street and that the agency must stay in its lane to make objective decisions.