Trump Attacks Fed Hike, Suggests Tariffs on Europe | Bloomberg Daybreak: US Edition

Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager — And I'm Karen Moscow. Here are the stories we're following today. — Karen, President Trump is criticizing the Fed for deciding to raise interest rates to a range of 3 and 3/4 to 4%. It was a unanimous quarterpoint hike, the first Fed's increase in borrowing costs in more than three years. The president spoke to reporters about Chair Kevin Worsh and the decision.

I'm relying on Kevin, but he's got, you know, a very tough board. He's got a board that was put there by a lot of other people and the uh interest rates are too high. They're not appropriate. And I told I talked to Kevin and I said, "You might as well vote with the board because it's not going to matter." President Trump went on to say rates should be at 1% or lower.

Kevin Wars, Nathan, President Trump's pick to lead the Fed, was sworn in less than four months ago. He defied many skeptics with the rate hike. — So the labor side of the Fed's congressional remmit is in good shape. Yet for more than 5 years, inflation has been running above target. So our predominant focus is on the price stability side of our mandate. The plain fact is that inflation is too high and has been for too long.

Traders quickly priced an additional rate increases from Worsh and his colleagues and pushed down their expectations for inflation in coming years. We got this reaction from former Fed regional presidents James Bullard and Patrick Harker. — I think this was a pretty good outcome for the Fed. Um, you know, they got their interest rate increase in which I think was appropriate. Yeah, three more sounds a little high compared to what the committee seem to be saying.