US Fed raises rates to tackle 'too high' inflation, irking Trump
Federal Reserve Chair Kevin Warsh announced a 0.25 percentage point interest rate hike, prompting an angry response from President Trump on social media. Trump continues to pressure the Fed for lower rates, linking them to his concerns over US trade deficits.
Why it matters
The public spat between the President and the Fed Chair underscores the tension between monetary policy and political economic goals, particularly ahead of midterm elections.
Federal Reserve Chair Kevin Warsh said the decision to raise interest rates by 0.25 percentage points was a "serious" one, but needed to be taken.
Federal Reserve Chairman Kevin Warsh holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) at the Federal Reserve in Washington, DC, US, on Sep 16, 2026. (Photo: Reuters/Evan Vucci)
Trump reacted angrily to the decision Wednesday, renewing his call for the Fed to lower interest rates "AND FAST" in a social media post.
"Interest rates in the United States should be 1 per cent, or less, because we are the best credit in the world - by far," Trump said on Truth Social, his social media platform.
"LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!" he said.
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