The U.S. Federal Reserve (Fed) announced on Wednesday (September 16) a quarter-point rate hike, raising the federal funds rate to a range of 3.75% to 4.00% — the first rate increase since 2023. Fed Chair Kevin Warsh said after the meeting that, given the U.S. inflation situation being “too high” and persisting for “too long,” raising rates was necessary to maintain price stability. In response, U.S. President Donald Trump, who has long pushed for rate cuts, posted on social media calling for rates to be lowered to 1% or below.
According to AFP, the Federal Open Market Committee (FOMC) unanimously agreed to the quarter-point hike that day. At the post-meeting press conference, Warsh said, “Our primary focus right now is maintaining price stability. The facts are clear: inflation is too high and has persisted for too long.” He emphasized that the committee decided to raise rates after assessing current conditions and will continue to monitor market reactions going forward.
The Fed’s decision to resume tightening with this rate hike runs completely counter to the accommodative stance Trump has long advocated. Just hours after the Fed announced the hike, Trump wrote in a social media post, “Interest rates in the U.S. should be lowered to 1% or lower, because our credit is the best in the world.”
Trump said the U.S. is seeing a surge of new investment, and that “if we stop trading with all the countries we run trade deficits with — which is most countries — we would earn at least $1.5 trillion a year.” He also voiced his displeasure with the decision when speaking to the media, calling it “a rate hike aimed at Trump,” and accused Fed decision-makers of being “hostile” toward him, saying their decisions were politically motivated.
BREAKING: President Trump says the Fed should have cut interest rates to 1% or lower and says the US is “carrying” countries with which it runs trade deficits. pic.twitter.com/0KHf7v05ej
— The Kobeissi Letter (@KobeissiLetter) September 16, 2026
