President Donald Trump openly criticized the Federal Reserve board for their decision to raise interest rates to a range of 3.75 to 4 percent, marking the first hike in three years. Trump, who had previously advocated for rates of 1 percent or less, expressed his dissatisfaction during comments to reporters in North Carolina on September 16, 2026.
Despite his strong disapproval of the rate hike, Trump defended Federal Reserve Chairman Kevin Warsh, whom he appointed earlier in the year. The President stated that Warsh's hands were tied due to the "very tough" and "hostile" nature of the board, which he claimed was put in place by "a lot of other people." Trump recounted telling Warsh, "You might as well vote with the board because it’s just not going to matter."
The President further elaborated on his frustration, asserting that the board members were "very political" and were making the wrong decision. He argued that the current interest rates were "too high," even though the country was performing well economically. Trump's sentiments were also echoed in a Truth Social post where he demanded lower interest rates for the United States, emphasizing its position as the "Best Credit in the World – BY FAR."
Earlier, a year prior, Warsh himself had expressed concerns about the central bank keeping interest rates too high. Despite the President's public disapproval, the Federal Reserve board's decision to raise rates was unanimous. Warsh stated that the hike was intended to "support a timelier return" to the Fed’s 2 percent inflation target, despite facing pressure from the White House.
