Finance & Currencies
Fed rate rise was political, Trump says
US President Donald Trump accused the Federal Reserve board of raising interest rates for political reasons after the central bank lifted borrowing costs for the first time since 2023.
The Federal Open Market Committee voted unanimously on Wednesday to raise rates by 25 basis points to a range of 3.75% to 4.00%. It said the move would support a timelier return to the Fed's 2% inflation target.
Trump told reporters that Fed chair Kevin Warsh was "a good man" but had a "hostile board". He accused the board of raising rates "only for political reasons" and said the increase was "against Trump".
Warsh said after the decision that the move was serious but necessary. "The plain fact is that inflation is too high, and has been for too long," he told a press conference.
Most Fed policymakers signalled that tightening may continue. In the central bank's Summary of Economic Projections, at least 12 of 18 participants expected one more rate increase before the end of the year, while four expected two more.
The Fed raised its year-end forecast for its preferred inflation gauge, the Personal Consumption Expenditures price index, to 3.7%. It also lifted its projection for year-end GDP growth to 2.3%.
Trump had already demanded lower rates "AND FAST" after the decision. White House spokesperson Kush Desai called the rate rise "rather unfortunate" and said Trump had been clear that he wanted lower interest rates.
Update
Donald Trump accused the Federal Reserve board of raising interest rates for political reasons.
Trump called the Fed board "hostile" and said it was acting against him.
Trump said Fed chair Kevin Warsh was "a good man" but had a hostile board.
Source note: AFP news report published on 16 September 2026 at 22:57:09 UTC.
Update
The Federal Open Market Committee voted unanimously to raise rates by 25 basis points to a 3.75%-4.00% range.
The increase was the Fed's first rate rise since 2023.
Fed chair Kevin Warsh said inflation was too high and had been too high for too long.
At least 12 of 18 Fed policymakers projected one more rate increase before year-end, while four projected two more.
The Fed raised its year-end PCE inflation forecast to 3.7% and its GDP growth forecast to 2.3%.
The White House spokesperson called the decision rather unfortunate.
Source note: AFP news report published on 16 September 2026 at 20:22:10 UTC.
Update
Donald Trump demanded lower interest rates after the Federal Reserve raised rates.
Trump called for lower rates “AND FAST”.
Source note: AFP news report published on 16 September 2026 at 20:41:43 UTC.
Update
The Federal Reserve projected one more rate hike by year-end.
The Fed raised its year-end real GDP growth forecast to 2.3 percent from 2.2 percent.
The Fed raised its preferred inflation gauge forecast to 3.7 percent from 3.6 percent.
Source note: AFP news report published on 16 September 2026 at 18:05:31 UTC.
Update
The Federal Open Market Committee is due to announce its decision on September 16 at 2:00 pm, or 1800 GMT.
CME's FedWatch tool put the probability of a rate hike at more than 92 percent.
A quarter of voting FOMC members dissented from the July decision to hold rates steady and called for an immediate hike.
White House economic adviser Kevin Hassett said on September 15 that the White House would understand and respect the Fed decision if it raised rates.
Source note: AFP news report published on 16 September 2026 at 02:13:15 UTC.
Update
White House National Economic Council Director Kevin Hassett said on CNN that he and Trump saw no reason to raise rates now.
Hassett said it was important for the Fed to leave things alone before an election to preserve its independence.
The item adds that Trump has threatened to cut trade ties with certain countries if the Fed raises rates.
The item says Warsh has recently emphasised the Fed's mandate to bring inflation down despite past support for lower rates linked to expected AI productivity gains.
Source note: AFP news report published on 13 September 2026 at 14:52:35 UTC.
Source
AFP news report published on .