US President Donald Trump stepped up pressure on Federal Reserve chief Kevin Warsh on Wednesday, demanding interest rates be cut to 1% or lower shortly after the central bank raised rates and signalled further increases may be needed to curb persistent inflation.
“Interest rates in the United States should be 1 per cent, or less, because we are the best credit in the world – BY FAR,” Trump wrote on Truth Social.
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” Reuters reported him adding.
Trump later told reporters he remained confident in Warsh, whom he appointed earlier this year to succeed Jerome Powell, but said he had spoken to him about the rate decision.
“I... talked to Kevin,” Trump said, appearing to confirm an interaction that Warsh has not corroborated.
“And I said you might as well vote with the board because it’s not going to matter. The board is very hostile. They’re very political. They’re doing the wrong thing.”
Trump has repeatedly criticised the Fed for not delivering the sharp rate cuts he has demanded. His latest remarks came shortly after policymakers unanimously raised the benchmark rate by 25 basis points to 3.75%-4%.
Warsh defended the decision at a subsequent press conference, calling it “a sober decision, serious decision, responsible decision”.
“The plain fact is that inflation is too high and has been for too long,” he said.
New policy projections showed 16 of the 18 policymakers expect at least one further quarter-percentage-point rate increase by the end of 2026, while two expect rates to remain unchanged.
Warsh said he opposed providing forward guidance and did not submit a projection.
Trump also appeared to link the US trade deficit to borrowing costs, although trade balances and monetary policy are separate economic issues. He had previously threatened to cut off trade with countries running deficits with the United States if the Fed did not cut rates.
“The word ‘deficit’ is nothing more than a fancy word for LOSS. We are ‘carrying’ almost every country in the world, and that cannot go on any longer,” Trump posted.
Warsh, who took office in June after Senate confirmation, had pledged to preserve the Fed’s independence in setting monetary policy while working more closely with the White House on other matters.
Asked whether he planned to meet Trump to explain the Fed’s decision, Warsh said: “I don’t have anything for you on discussions with the President.”
Trump’s latest post was his second public clash this week with members of institutions he helped shape. After the Supreme Court rejected his attempt to regulate how states issue mail ballots, he criticised three justices he had appointed.
White House officials have spent much of the week publicly pressing the Fed over interest rates.
One former White House official told Reuters that Trump’s latest post represented a relatively restrained expression of disagreement, noting that he criticised the policy without directly blaming Warsh or threatening retaliation against the central bank. - September 17, 2026
