Fed Raises Rates To Stop Americans Becoming Too Rich

President Donald Trump condemned the Federal Reserve on Thursday for raising interest rates to prevent Americans from becoming dangerously wealthy before the midterm elections. The Fed, led by Trump appointee Kevin Warsh, unanimously increased its benchmark rate by a quarter point to 4 percent, citing stubborn inflation, an economic condition the White House has determined occurs only under Democratic presidents. Trump demanded rates of 1 percent or lower and denounced the “hostile” Fed board while sparing Warsh, who merely voted for, defended and publicly explained the decision Trump called an attack on the country.

“The economy is doing so incredibly well that the Fed had to attack it, because if mortgages became affordable, frankly, the Democrats would never recover,” Trump said. “Kevin understands this, I understand it better, and the hostile board understands almost nothing except politics, interest rates and probably addition.” Administration officials said the increase proved Trump’s economic policies were working too effectively, forcing central bankers to protect the nation from an uncontrolled outbreak of homeownership, manageable credit-card bills and used-car financing that did not require a co-signer, a kidney and a 96-month commitment.

Warsh said inflation remained too high and indicated another increase could follow, a standard effort to reduce demand that Trump allies classified as election interference by arithmetic. White House advisers explained that prices were not rising because goods cost more, but because Americans had been spoiled by decades of expecting numbers on store shelves to retain meaning between aisles. Trump later said he had privately advised Warsh to support the increase, converting an act of institutional defiance into another flawless presidential decision that the president strongly opposed. Markets declined modestly, confirming Wall Street’s longstanding hostility toward prosperity, numbers and unanimous votes by officials selected by Republicans. The rate increase therefore established that Americans had become too rich to be trusted with affordable borrowing.

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