Trump demands 1 per cent rates after the hike as Warsh says the Fed will stay in its lane
The president attacked the decision within hours while insisting he still backs the chair he appointed.
Assembled by Claude from 11 sources at 10 outlets · Thursday, September 17, 2026, Morning edition, 10:14 AM EDT · no human byline
What happened
President Trump responded to the rate rise by demanding cuts. "Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World", he wrote on Truth Social, adding that rates should come down "AND FAST!" axios.com. Reuters reported that he lashed out at the central bank after Chair Kevin Warsh backed the increase reuters.com.
He also said he was standing by Warsh, whom he picked to lead the Fed, and that he had spoken to him just before the unanimous vote wsj.comaxios.com. Speaking to reporters, Trump defended Warsh personally and blamed a hostile board for the decision nypost.com. Politico framed the day as Warsh defying Trump while signalling more tightening to come politico.com.
Why it matters to investors
The pressure is not confined to the president. Trade adviser Peter Navarro called the increase a bad decision thehill.com and warned it amounted to a double tap on the economy tradingview.com. Navarro also tied his objection to trade, citing deficits with countries he said cheat the United States thehill.com.
The Fed's own projections show 12 of 18 officials expect one more rate hike this year, while four expect two more axios.com. That is the gap the White House is arguing against, and it is wider than a single meeting.
Warsh declined to answer questions about his conversations with the president uk.finance.yahoo.com. Asked whether the increase was another test of the Fed's independence, he demurred and said independence is a two-way street wsj.com. Asked the same question by the Washington Examiner, he said the Fed would stay in its lane washingtonexaminer.com. For investors the relevant point is not the rhetoric but whether the committee's composition changes.
What to watch
The legal front matters more than the social-media one. Trump moved to fire Fed Governor Lisa Cook, the first such dismissal in 111 years, setting up a Supreme Court battle english.nv.ua. That case, not the press conference, is where the board's future composition will be decided uk.finance.yahoo.com.
Two further threads are worth tracking. Trump held multiple undisclosed calls with Warsh, according to reports cited alongside coverage of the decision uk.finance.yahoo.com. And the president's simultaneous insistence that he retains confidence in his own appointee wsj.com sits awkwardly with his attack on the board that voted with him nypost.com. The market reads the combination as a test of whether policy is set in Washington or at the Eccles Building, and prices the dollar, the long end of the curve and the inflation premium accordingly reuters.com.
Sources
- uk.finance.yahoo.com: Trump calls for slashing interest rates to '1% or less' after the Fed's first hike in 3 years (2026-09-16)
- wsj.com: Trump Says He Backs Warsh After Central Bank Raised Interest Rates - WSJ (2026-09-17)
- axios.com: Trump demands lower interest rates after Fed decision (2026-09-16)
- tradingview.com: Trump Adviser Peter Navarro Slams Kevin Warsh's Fed Rate Hike, Warns of 'Double Tap ... (2026-09-17)
- thehill.com: Peter Navarro says Fed's rate raise is 'a bad decision' (2026-09-17)
- reuters.com: Trump lashes out at Fed after Warsh backs rate hike - Reuters (2026-09-16)
- wsj.com: Warsh: Fed Independence Is a Two-Way Street - WSJ (2026-09-16)
- washingtonexaminer.com: 'Stay in our lane': Warsh vows Fed independence after hiking rates - Washington Examiner (2026-09-16)
- politico.com: Warsh defies Trump as Fed hikes rates and signals more to come - POLITICO (2026-09-17)
- nypost.com: Trump defends Fed chair Kevin Warsh after interest rate hike, blames 'hostile board' for ... (2026-09-17)
- english.nv.ua: Trump slams Fed chair he appointed over interest rate hike - The New Voice of Ukraine (2026-09-17)