Peter Navarro says Fed’s rate raise is ‘a bad decision’

White House adviser Peter Navarro voiced strong opposition on Wednesday to the Federal Reserve’s decision to raise interest rates, describing the move as a "bad decision." Navarro’s remarks came the same day the Fed’s Federal Open Market Committee voted to lift its target for the federal funds rate.

The FOMC, under the leadership of Fed Chair Kevin Warsh, approved the rate increase unanimously. The committee set the new benchmark range at 3.75 percent to 4 percent, a change intended to influence borrowing costs across the U.S. economy.

Navarro’s public criticism underscores a clash between a senior White House official and the central bank’s policy action. While the FOMC’s vote reflects the central bank’s collective judgment on monetary policy, Navarro’s comments signal notable disagreement from within the executive branch.

The Fed’s decision to raise rates will affect interest rates broadly, from consumer loans to business financing, and the public exchange of views between a White House adviser and the Fed highlights the political and economic attention such moves attract.