Federal Reserve is expected to raise its benchmark rate, defying President Trump's demands
The quarter-point move lifts the benchmark range to 3.75% to 4.00% as policymakers try to curb inflation and preserve credibility with markets.
- On Wednesday, September 16, 2026, the Federal Reserve unanimously raised the federal funds rate by 25 basis points to a range of 3.75% to 4.00%, marking the first rate increase since July 2023.
- Persistent inflation and surging energy prices driven by the ongoing war in Iran prompted the policy shift, as officials aim to contain price pressures spreading through the broader economy.
- Federal Reserve Chair Kevin Warsh described the decision as "sober," stating "inflation is too high, and has been for too long" during a press conference following the announcement.
- Borrowing costs for mortgages and credit cards will rise, while National Economic Council director Kevin Hassett noted the White House respects the Fed's independence despite concerns about timing near midterm elections.
- Financial markets now anticipate additional rate increases in December and March, as policymakers prioritize inflation control over potential economic slowdowns to reach the central bank's 2% target.
515 Articles
515 Articles
Trump rips 'hostile' Fed board after interest rate hike but defends Warsh
President Donald Trump tore into the “hostile” Federal Reserve after the board voted on Wednesday to raise interest rates but held back criticism of Chairman Kevin Warsh, whom he tapped to lead the central bank earlier this year. Speaking with reporters in North Carolina, Trump was asked about the interest rate decision. The president said Warsh’s […]
During Impromptu Presser President Trump Notes a Political Fed Board and Sends a Warning to Europe/Canada
During an impromptu press availability before boarding Airforce One, President Trump paused to talk to the assembled press pool. President Trump notes during a discussion with Federal Reserve Chairman Kevin Warsh he told him to just go along with the board decision to raise interest rates again. The board is highly political and operating against […]
US Fed raises rates to tackle 'too high' inflation, irking Trump
The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent. "The plain fact is that inflation is too high, and has been for too long," Warsh told a press conference, adding that the decision was a "serious" but necessary one. And Wednesday's rate hike may not be the last -- the vast majority of Fed policymakers indicated that at least one more rate hike was likely necessary before…
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