特朗普批评美联储加息，白宫称决定不幸并要求降息

We heard from the fed chair, Kevin Warsh, a little while ago, the fed decision. And of course, the news conference that followed. Speaking to reporters, including our own Michael McKee following the unanimous decision to hike rates for the first time in more than three years, Warsh declined to comment on any potential discussions he has had with the president, even as President Trump, of course, calls for more rate cuts.

The white House today called the fed decision, quote, rather unfortunate, and the president posting on truth social interest rates in the U.S., he says, should be 1% or less because we are the best credit in the world by far. He says our country is booming with new investment. If we stop trading with every country that we have a deficit with, which is most of them, we would make at least $1.5 trillion a year lower the interest rates, he writes, lower for the United States of America and fast.

Joining us now live from the white House is Chris Fallon, who's chair of the white House Council of Economic Advisers. Mr. chairman, thanks for being with us today on Bloomberg on that day that the Federal Reserve do damage to the economy today? Well, yesterday, uh, I said that I thought that raising rates today, if they were going to do it, would be a mistake. They did raise rates. Uh, I think it was a mistake. Any way you measure it.

Core headline PCE, core CPI, headline CPI. The average over the last three months of any of those is less than the average over the last three. The previous three months. Any way you measure it, inflation is coming down. CPI core year over year is at the lowest it's been in five and a half years. So what I asked yesterday is what makes today different than three months ago. Uh, I don't think that this was the right decision, but I do want to say something about fed independence.

Fed independence means that the Federal Reserve is the one that makes the decision, not the white House. It does not mean that members of this administration can't have an opinion or express their opinion. Is that why the president did not call out Kevin Warsh in his post today? I have that I can't speak on. Uh, but the president if Utah with his opinions I do not discuss, uh, my role as an adviser. Okay. If I could lean on your role as an adviser.

Uh, if if we understand the way in which the president thinks about the economy here in this true social post, he suggested that the U.S. needs lower rates because it's performing so well economically. If the economy is booming, in the president's words, and you were to ease policy into that, how would that not end up being inflationary? Mr. chairman, one thing I very much liked about Chairman Walsh's, uh, Jackson Hole comments was he appeared to reject the idea That you should a booming labor that he would look to the labor market where GDP numbers as a way of deciding what to set interest rates at during those.

During that speech, which I was there for, he specifically said, what's going with one? That he cared about inflation most of all, that he thought that the main job, he basically said inflation is on us, the fed. And two, he would make decisions based on what inflation is, not what all these other statistics are and not what wall. He wouldn't be a slave to Wall Street. Uh, that you know what I would calling the Hall of Mirrors where the fed is constantly looking at Wall Street.

Wall Street's looking at the fed, and they all bounce off each other that the fed would make a decision based on inflation. Well, and understanding his focus is on inflation if he were to lower rates, therefore potentially fueling greater demand, how can you have greater demand without being inflationary? I'm just wondering what the scenario is here that is ideal for this president and this white House. I personally reject that.

I think that, again, if inflation is coming down and it's coming in the right direction, the proper thing for the fed to do is to say our main job is inflation. Inflation is coming down and we'll set interest rates based on that, not on what the economy, not what on GDP is doing, not on what, uh, the labor markets. So because frankly, it's just so I understand inflation is coming down, but it's still not at target. So if the if the main goal was to get inflation to target, how was this hike a mistake.

Because inflation is not at target. Because right now I would have waited until finding out whether or not what they're currently doing stops working because it hasn't stopped working. Inflation is coming down. Yes, it is over. Target. It's been over target for 66 months. Almost all of those months. During the Biden administration. Uh, I would like to say that one of the things that's bothering me about all of this is I watched your station when this came out, and there's this constant frenzy of fed watching.

Everyone's looking at the fed, waiting for the announcement to come on, waiting for the press conference to come on. And, you know, here's a prop that I brought, which is just the statement with read for every, uh, word or punctuation mark that's different than the month before. People analyze these, they they go, why was the word strong replaced with the word robust? Well, that's kind of what the markets do, Mr. Chairman.

But Chairman Warsh very much said in his Jackson Hole speech, or at least I interpreted as let's get away from this. Let's have, uh, let's get away from the constant pretense, you know, what is the fed going to do? Uh, back and forth. What I was calling the Hall of Mirrors. We need to kind of focused today on what the fed has already done. And I appreciate your point on that, Mr. Chairman. But if we just, like, focus on his own words today, uh, what we heard from Chair Warsh, inflation is too high and has been for too long.

And he said this summer's inflation readings do not tell me that underlying trends have meaningfully improved. So who should the market listen to the fed or you again the fed. I don't. The administration's allowed to have an opinion. Uh, the markets the decision makers are different. I see this is the fed itself. Uh, there's no question that decision maker in the end, is the fed itself. One of the things that happens, though, with this constant fed watching is we had two amazing statistics come out yesterday.

One, poverty is now lowest on record. So the poverty rate in the United States is the lowest on record. Adjusted for inflation, household income is now the highest on record. All of this crazy. What is the fed going to do? What are the forecast going to do? Uh, forecast of what the fed is going to do. Constant fed watching blocks out. That these are things that I believe are more fundamental and more important. Frustration.

Well, okay. As you, uh, talk about records here, can I ask you about the record high price we are seeing for diesel across the country? This is the fuel of so many parts of the economy. If diesel remains above $6 a gallon, Mr. Chairman, when would you expect greater inflationary effects from that to feed through their homework? I have that is a very technical and interesting question. Uh, we do tend to see things show up with a lag.

So for instance, when oil prices go up, uh, several months later airline prices go up. Uh, that kind of what I would call bleeding through has started to show up from the oil prices up. And it is a difficult technical forecasting question that requires more expertise than I can give you in this short interview. All right. Well, moving forward here, uh, Mr. Chairman, we just want to get a sense of not what the fed is going to do, but what the economy is going to do.

And with 48 days left to the election, I wonder what your thoughts are with another fed meeting to go. The market seems to think there's another hike coming. I'm sure that's not something that you want to see. Will there be a meaningful change lower in inflation between now and November? Right now, like I said, infla