Trump demands 1% or lower interest rate after first Fed hike since 2023
- On Wednesday, September 16, 2026, the Federal Open Market Committee unanimously raised the federal funds rate by 0.25 percentage points to a 3.75–4.00 percent range. President Donald Trump immediately demanded rates be cut to "1% or less" via Truth Social.
- The first rate hike since 2023 aims to combat elevated inflation, which Federal Reserve Chair Kevin Warsh described as a "serious decision." Policymakers attributed persistent price pressures to energy shocks stemming from the ongoing war in Iran.
- Trump claimed the U.S. economy is "BOOMING with new Investment," asserting that ceasing trade with deficit nations would generate "at least, 1.5 Trillion Dollars a year." He labeled the trade deficit a "loss" while demanding the central bank "LOWER THE INTEREST RATES... AND FAST!"
- White House spokesperson Kush Desai called the decision "rather unfortunate," while Warsh declined to discuss private interactions with the president. Warsh emphasized the central bank must ensure rising energy costs do not broaden out into the wider economy.
- Despite Trump's political pressure, policymakers indicated that at least one additional rate hike is likely before year-end to reach their 2 percent inflation goal. This persists, creating ongoing friction regarding the central bank's independence.
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356 Articles
The Korea Times
rtl.lu'In our lane': Fed's Warsh defies Trump but still fighting for credibility
WASHINGTON — U.S. Federal Reserve chair Kevin Warsh delivered the interest rate hike this week that many economists think surging inflation required, defying President Donald Trump — but questions about the central bank chief's credibility linger. The Fed on Wednesday raised rates in the world's largest economy by 25 basis points to between 3.75 and 4.00 percent, with policymakers signalling at least one more rate hike before year-end. Trump has…
Trump still has confidence in his Fed’s chairman, despite the rate increase to 4%
President Donald Trump said he has confidence in the recerntly appointed Federal Reserve chair Kevin Warsh and found a way to justify the central bank’s decision to increase the benchmark interest rate to 4%, the first since 2023.
Instead of following Donald Trump's call for lower interest rates, the Fed boss is fighting inflation. This is an unexpected backbone.
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