Trump urges Fed chief Warsh to slash rates to 1% or lower
President Donald Trump used his Truth Social account to demand that Federal Reserve Chair Kevin Warsh lower U.S. interest rates to 1% or below after the Fed voted to raise them.
On September 16, President Donald Trump took to Truth Social to argue that the United States should enjoy interest rates of 1% or less, citing the country’s status as the premier global borrower. His remarks followed the Federal Reserve’s unanimous decision to raise rates by a quarter point, moving the target range to 3.75-4.00%. Federal Reserve Chair Kevin Warsh described the increase as a “sober, serious, responsible” step to combat persistent inflation and hinted that additional hikes are probable.
Trump claimed to have spoken with Warsh, though the Fed chief declined to confirm any meeting or share details. In the same post, Trump suggested that high borrowing costs exacerbate U.S. trade deficits, a link economists consider tenuous. The president’s criticism adds to recent pressure from the White House on the central bank to keep rates low.
Why it matters
The president’s public attack on the Fed could influence market expectations and political pressure around monetary policy.
How this story developed
- Sep 12 Trump's Kennedy Center takeover sparks funding crisis and artist exodus
- Sep 16 Trump warned he would halt reconstruction entirely pending a court ruling on the naming request.
- Sep 16 The House of Representatives recessed after only seven workdays since returning from summer break, cancelling Thursday’s votes on Secretary of War Pete Hegseth’s impeachment and a Democratic AI proposal.
- Sep 17 Mike Johnson shifted Thursday’s agenda, delaying both the impeachment vote and the AI legislation.
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