Archive · 17 Sep 2026
Trump Pressures Fed After Rate Hike, Demands One Percent Rates
The Federal Reserve raised interest rates to try to slow down inflation.
Inflation means prices are rising too quickly.
President Donald Trump wants much lower rates, saying they should be 1% or less.
He argued that the United States is a very reliable borrower.
Trump also connected interest rates to trade deficits, although the article says the two issues are largely unrelated.
Fed Chair Kevin Warsh said inflation is still too high and that raising rates was responsible.
Most Fed policymakers expect rates may rise again this year.
Trump said he spoke with Warsh, but Warsh did not confirm that conversation.
The disagreement raises questions about how much pressure the president is putting on the central bank.
The Federal Reserve unanimously raised its benchmark interest-rate target by 25 basis points to 3.75%-4.00%.
President Donald Trump called for U.S. interest rates to be 1% or lower and urged the Fed to act quickly.
Fed Chair Kevin Warsh said inflation remains too high and described the rate increase as responsible.
Sixteen of 18 Fed policymakers projected at least one additional quarter-point rate increase by year-end.
Trump said he had spoken with Warsh, but Warsh did not confirm discussions with the president.
- Who
- President Donald Trump, Federal Reserve Chair Kevin Warsh, and Federal Reserve policymakers.
- What
- Trump criticized the Federal Reserve’s interest-rate increase and called for rates of 1% or lower, while the Fed defended its decision.
- When
- September 17, 2026; the rate decision and Trump’s comments occurred on Wednesday.
- Where
- The United States.
- Why
- The Federal Reserve said inflation remained too high and raised rates to address it, while Trump wants lower borrowing costs.
Trump and Rate-Cut Advocates
Federal Reserve Officials
Appropriate interest-rate level
Trump and Rate-Cut Advocates
Trump argues that rates should be reduced to 1% or lower to lower borrowing costs for the United States.
Federal Reserve Officials
The Federal Reserve raised rates because officials said inflation remains too high.
Assessment of the rate increase
Trump and Rate-Cut Advocates
Trump criticized the Fed’s decision and said policymakers were doing the wrong thing.
Federal Reserve Officials
Warsh called the increase a sober, serious, and responsible decision.
Relationship to trade deficits
Trump and Rate-Cut Advocates
Trump linked the U.S. trade deficit to borrowing costs and argued that deficits represent losses.
Federal Reserve Officials
The article states that trade deficits and central-bank borrowing costs are largely unrelated.
- Rate decision
- The Federal Reserve raised rates by 25 basis points to 3.75%-4.00%.
- Trump’s demand
- Trump said U.S. interest rates should be 1% or lower.
- Fed inflation view
- Kevin Warsh said inflation was too high and had remained too high for too long.
- Future projections
- Sixteen of 18 policymakers projected at least one more quarter-point increase by year-end.
- Warsh’s position
- Warsh said the rate increase was a serious, sober, and responsible decision.
- Reported conversation
- Trump said he spoke with Warsh, while Warsh declined to confirm discussions with the president.
- Earlier Fed leadership
- Trump appointed Warsh in January to succeed Jerome Powell, who left the chairmanship after frequently facing Trump’s criticism.