Trump calls for slashing interest rates to '1% or less' after the Fed's first hike in 3 years

Sep 17, 2026 04:09 AM - 10 hours ago 3

The Fed hiked liking rates for the first clip successful 3 years — and President Donald Trump isn't thrilled.

"Interest Rates successful the United States should beryllium 1%, aliases less, because we are the Best Credit successful the World — BY FAR," he wrote connected Truth Social. "Our Country is BOOMING pinch caller Investment!"

While Trump didn't mention him by sanction successful the post, Chair Kevin Warsh faced a monolithic test of Fed independence Wednesday. The Federal Open Market Committee voted unanimously to raise rates by a 4th constituent to foster unchangeable prices. Inflation is stubbornly outpacing costs growth successful the US and remains supra the Fed's 2% goal, mostly owed to proviso shocks from the Iran War and flip-flopping White House tariff policies.

In quarterly economical projections, the committee besides expects GDP maturation to stay comparatively strong, unemployment to clasp steady, and ostentation to enactment supra 2% done the remainder of the year. A slew of members spot different complaint hike connected the horizon.

Trump — who nominated Warsh to the chairmanship — has been vocal astir wanting little liking rates, a monetary argumentation way that would apt consequence successful higher ostentation and a climbing costs of surviving for Americans.

Congressional leaders, economists, and members of the FOMC person worried astir really Trump's argumentation unit will style a agelong nonpartisan cardinal bank. With a hike, Warsh could spot much flak from the White House.

Trump many times pushed erstwhile Chair Jerome Powell to little rates successful the second portion of his term. Political unit connected the cardinal slope culminated successful a Department of Justice probe into Powell's handling of building astatine the Fed's Washington DC buildings and a owe fraud lawsuit against Governor Lisa Cook that reached the Supreme Court.

Warsh declined to reply immoderate questions astir Trump during the September 16 property conference. He said Fed independency is "a two-way street."

The cardinal slope will enactment successful its lane, Warsh said, and lawmakers should enactment successful theirs.

Allie Kelly is simply a newsman connected Business Insider’s system team, wherever she covers lodging and affordability successful America’s biggest cities. Her latest task — called “Cost of the City” — is an ongoing heavy dive into Mayor Zohran Mamdani’s schedule and life successful New York. Allie antecedently worked connected a yearlong investigation into the effect of rising crab cases on young adults, and a bid astir retirees' reflections on money and loneliness. She besides covers the Federal Reserve.Allie is simply a predominant impermanent connected various TV and power programs and a contributor to Business Insider’s Big Business and quicksplainer video series.Before joining Business Insider, Allie covered breaking news astatine The Dallas Morning News and wrote and edited for The Trace. She is an alum of The University of North Carolina astatine Chapel Hill.