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Trump demands interest rate cut
The gist
The Fed raised rates 25 basis points to 3.75%-4%, and Trump demanded 1% or less.
The clash tests Fed independence seven weeks before midterms where affordability is central.
How it unfolded
- Sep 13, 2026Trump said the United States is so strong it should be paying the lowest interest rate in the world.
- Sep 15, 2026The Fed was widely expected to lift its short-term rate for the first time in three years to fight stubbornly high inflation; the rate was then about 3.6%.
- Sep 16, 2026The FOMC voted 12-0 to raise the federal funds rate by 25 basis points to 3.75%-4%, the first hike since July 2023 and the first major policy move under Chair Kevin Warsh.