“It’s a monumental mistake. … When the Fed raises rates on top of an energy price shock, it runs the very real risk of an overreaction in driving the economy down into a recession or worse. … It is inexplicable that the Fed and Kevin Warsh do not understand that history. [What the Fed is doing is] ahistorical and bad economics.
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The Fed Raises Rates for the First Time Since 2023 as Trump's Own Chair Says "The Plain Fact Is That Inflation Is Too High and Has Been for Too Long" — Trump Answers That Rates "Should Be 1%, or Less," Calls the Board "a Bunch of Politicians," and Says He Told Kevin Warsh "You Might as Well Vote With the Board," While Elizabeth Warren Calls Warsh Trump's "Sock Puppet"
September 16, 2026
On Sept. 16, 2026, the Federal Reserve's Federal Open Market Committee voted 12-0 to raise its benchmark rate by a quarter point, to a range of 3.75% to 4%. It was the Fed's first increase since July 2023 and the first under Chair Kevin Warsh, whom President Trump picked and the Senate confirmed in May. Updated projections showed 16 of 18 officials expect another hike before the end of the year. At his press conference, Warsh said inflation, 3.4% as of August, was "too high" and pointed to a strengthening economy and "hot spots around the world." Renewed U.S.-Iran fighting has pushed gas prices up. The hike came 12 days after Trump threatened to "stop trading" with deficit countries unless the Fed cut rates. Trump wrote on Truth Social that rates "should be 1%, or less," called the board "very political," and told reporters he had said to Warsh beforehand, "you might as well vote with the board because it's not going to matter." Asked about that conversation, Warsh said, "I've got nothing for you on a discussion with the president." Trump said he still has confidence in Warsh. A day before the decision, National Economic Council Director Kevin Hassett had said the White House would "respect the process." Democrats blamed Trump's tariffs and the Iran war for the price increases behind the hike.
10
Statements Recorded
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10 Statements
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR. … LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!
“The board is very political. They're doing the wrong thing. They're a bunch of politicians. … They're raising rates to make Trump do as bad as they can possibly do.
“I talked to Kevin. And I said you might as well vote with the board because it's not going to matter. … I think our interest rates are too high. We should be paying the lowest interest rates anywhere in the world.
“[Asked about Trump's claim that they discussed his vote:] I've got nothing for you on a discussion with the president. … Part of the independence of the Federal Reserve is we stay in our lane… we'll let people that do trade policy and fiscal policy stay in their lane too.
“The plain fact is that inflation is too high and has been for too long. … We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Today, the FOMC decided that this standard has not been satisfied.
“Donald Trump is driving up costs so much that even his sock puppet at the Fed might raise interest rates. If Trump ended his war in Iran and reversed his chaotic tariffs, inflation wouldn't be as high as it is today, and the Fed might actually be talking about bringing down rates. I want to see lower interest rates for families. I want to see them pay less for their mortgage or their credit card bills. But Donald Trump is standing in the way.
“You will pay more for your mortgage and your credit card bills because of Donald Trump.
“[Trump's economic record is to blame:] The Fed hiking rates was the inevitable result of his failures and will raise Americans' costs in countless ways.
“We have very high regard for Kevin Warsh. Both the president and I have known him forever. … Whatever he does tomorrow, we're going to respect the process and understand that he is doing what he and the committee think is correct.