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Trump demands 1% or lower interest rate after first Fed hike since 2023
Trump urged the Federal Reserve to cut borrowing costs to 1% or less as officials said inflation remained too high.
- On Wednesday, September 16, 2026, the Federal Open Market Committee unanimously raised interest rates to 3.75–4.00%, the first hike since 2023. Hours later, President Donald Trump demanded on Truth Social that rates be cut to "1%, or less."
- Federal Reserve Chair Kevin Warsh defended the hike as a "sober decision, serious decision, responsible decision," citing elevated inflation driven by energy costs from the ongoing war with Iran as the primary rationale for tightening policy.
- Trump claimed the U.S. economy is "BOOMING with new Investment" and asserted that ending trade with deficit-running nations would generate "at least, 1.5 Trillion Dollars a year," characterizing the deficit as "nothing more than a fancy word for LOSS."
- White House spokesperson Kush Desai called the decision "rather unfortunate," while Warsh declined to discuss his private interactions with Trump. Trump later defended Warsh but blamed the "hostile" board for the rate increase despite appointing the chair himself.
- Projections indicate 16 of 18 policymakers anticipate at least one more quarter-point hike by year-end, maintaining the tightening cycle. The decision arrives just before the November midterm elections, complicating the political landscape for candidates focused on economic affordability.
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ANALYSIS - The U.S. Central Bank raised its interest rates to curb inflation. To the great dam of the U.S. President who ransacked this decision, while sparing Kevin Warsh.
·Paris, France
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Kreiszeitung+5 Reposted by 5 other sources
War-related inflation remains too high, the US Federal Reserve explained – therefore the first rate hike in three years.
·Syke, Germany
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'It's a raise against Trump:' Despite inflation being ahead of target for five years, Trump brands latest hike as political
"The problem they have is that we have the greatest economy in history ... so they're raising that only for political reasons, and that's a raise against Trump."
·New York, United States
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Total News Sources243
Leaning Left26Leaning Right39Center64Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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