Donald Trump pushes back on Federal Reserve rate hike ahead of midterms

President Donald Trump fired off a broadside against the Federal Reserve on September 16 after the central bank voted to raise the federal funds rate by 25 basis points, lifting the target range to 3.75%–4.00%. It was the first rate hike since 2023, and it arrived at arguably the worst possible moment for the White House: just weeks before midterm elections that will determine whether Republicans keep control of Congress. Trump took to Truth Social to make his displeasure known, writing that “Interest Rates in the United States should be 1%, or less…because we are the Best Credit in the World — BY FAR.” He called for rate cuts “FAST!” and described the Federal Open Market Committee as “very hostile” and “very political.” The political calculus behind the criticism The FOMC vote was unanimous, which means Fed Chair Kevin Warsh, Trump’s own appointee, sided with the rest of the board. Trump addressed that head-on, saying he had advised Warsh to “vote with the board because it’s just not going to matter.” In other words, the president publicly backed his guy while pinning blame on everyone else at the table. During his first term, Trump regularly attacked then-Chair Jerome Powell for ...