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President Donald Trump Just Threw the Federal Reserve Under the Bus Yet Again Over Interest Rates

Fed Chair Kevin Warsh and the Federal Open Market Committee (FOMC) are contending with elevated inflation, thanks in part to the president's policies.

President Donald Trump Just Threw the Federal Reserve Under the Bus Yet Again Over Interest Rates

Published August 1, 2026 · Category: Finance

Overview

With five months left, 2026 has shaped up as another banner year for the stock market. The iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and innovation-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) have rallied 10%, 9%, and 7%, respectively, since the beginning of the year.

Above-average annualized returns are nothing new with President Donald Trump in the White House. While the stock market advances under most presidents, the annualized returns of Wall Street's major stock indexes under Trump have outpaced most other presidents since the late 1890s. But this trend may not last much longer if the Federal Reserve raises interest rates.

Details

Although the Federal Open Market Committee (FOMC) -- the 12-person body, including Fed Chair Kevin Warsh, responsible for setting the nation's monetary policy -- acts independently within the U.S. government, this hasn't stopped President Trump from critiquing his new Fed chair and/or the FOMC about their decisions on interest rates.

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.