TLDR
- The Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4%, its first hike since 2023
- Trump demanded rates be cut to 1% “or less” hours after the decision
- Trump said he told Fed Chair Kevin Warsh to “vote with the board” before the decision
- Warsh and all 12 FOMC members voted unanimously for the hike
- The Fed signaled another rate hike is likely before the end of 2026
President Donald Trump is pressuring the Federal Reserve to cut interest rates to 1% or lower, just hours after the central bank raised rates for the first time in three years.
The Federal Open Market Committee voted unanimously on Wednesday to raise its benchmark rate by 25 basis points. That puts the target range at 3.75% to 4%.
BREAKING: Trump calls for interest rate cuts pic.twitter.com/u2zEXHEmR5
— The Spectator Index (@spectatorindex) September 16, 2026
The hike is the first since 2023 and the first under Fed Chair Kevin Warsh, who was nominated by Trump himself.
Trump reacted quickly. He posted on Truth Social demanding the Fed lower rates, writing: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
He also told reporters that US rates “should be 1%, or less, because we are the Best Credit in the World.”
Trump Says He Spoke to Warsh Before the Vote
Trump revealed he had spoken with Warsh ahead of the decision. He told reporters: “I talked to Kevin and I said, ‘You might as well vote with the board because it’s not going to matter.'”
Warsh declined to comment on any conversation with the president. When asked at a press conference, he told reporters: “I’ve got nothing for you on a discussion with the president.”
Warsh defended the rate hike as appropriate. He also said Fed independence is a “two-way street” and that the central bank would stay in its lane.
Trump said he still has confidence in Warsh, but called the rest of the FOMC “a bunch of politicians” doing the wrong thing.
“They’re raising the rates to make Trump do as bad as they can possibly can do,” the president said.
White House Pushes Back on the Decision
White House spokesman Kush Desai called the hike a “rather unfortunate decision” that was “not backed by a particularly compelling economic case.”
Desai also said Trump still believes in Fed independence, but that the president has a First Amendment right to speak out.
The Fed’s own projections show a majority of officials expect at least one more rate increase before the end of the year. The FOMC statement said inflation “remains elevated.”
Less than two weeks ago, Trump threatened to cut off trade with countries that run trade surpluses with the US unless the Fed lowered rates. That group covers most of the country’s major trading partners.
Democrats moved quickly to tie the rate hike to Trump’s economic policies. Rep. Brendan Boyle said the increase was “further proof that Donald Trump and Republicans have failed on the economy.”
Sen. Elizabeth Warren argued that without Trump’s policies, the Fed might be talking about cutting rates instead.
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