Key Takeaways The Federal Reserve approved a 25 basis point rate increase, bringing the target range to 3.75%-4%, marking the first increase since 2023 President Trump immediately called for
President Donald Trump is mounting pressure on the Federal Reserve to slash interest rates to 1% or below, mere hours following the central bank’s decision to implement its first rate increase in three years.
The Federal Open Market Committee reached a unanimous decision Wednesday to implement a 25 basis point increase to its key interest rate benchmark. The new target range now stands at 3.75% to 4%.
BREAKING: Trump calls for interest rate cuts pic.twitter.com/u2zEXHEmR5
— The Spectator Index (@spectatorindex) September 16, 2026
This marks the initial rate increase since 2023 and represents the first such action under Fed Chair Kevin Warsh’s leadership, a Trump appointee.
Trump’s response was swift and forceful. Taking to Truth Social, he demanded immediate Fed action, declaring: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
Speaking with journalists, he elaborated that US interest rates “should be 1%, or less, because we are the Best Credit in the World.”
The president disclosed that he had communicated with Warsh before the FOMC vote. Speaking to the press, Trump stated: “I talked to Kevin and I said, ‘You might as well vote with the board because it’s not going to matter.'”
When questioned about any presidential communication during his press conference, Warsh refused to elaborate, simply stating: “I’ve got nothing for you on a discussion with the president.”
Warsh stood by the rate increase decision as justified. He emphasized that Fed independence operates as a “two-way street” and pledged the institution would maintain its proper role.
While Trump expressed continued support for Warsh, he criticized other FOMC members as “a bunch of politicians” pursuing misguided policies.
“They’re raising the rates to make Trump do as bad as they can possibly can do,” the president claimed.
White House spokesman Kush Desai characterized the rate increase as a “rather unfortunate decision” lacking “a particularly compelling economic case.”
Desai maintained that Trump respects Fed independence while asserting the president retains his First Amendment right to voice concerns.
According to the Fed’s latest forecasts, a majority of policymakers anticipate implementing at least one additional rate hike before year’s end. The FOMC’s official statement noted that inflation “remains elevated.”
Just under two weeks prior, Trump issued warnings about potentially severing trade relations with nations maintaining trade surpluses with the US if the Fed refused to reduce rates. This category encompasses most major US trading partners.
Democratic lawmakers quickly seized on the rate hike to criticize Trump’s economic agenda. Rep. Brendan Boyle characterized the increase as “further proof that Donald Trump and Republicans have failed on the economy.”
Sen. Elizabeth Warren contended that absent Trump’s economic policies, the Fed would likely be considering rate reductions rather than increases.
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