Federal Reserve rate hike defies Trump
The Federal Reserve was widely expected to raise its benchmark interest rate for the first time in three years, defying President Trump's push for a cut, as Chair Kevin Warsh signaled at the Fed's Jackson Hole conference that inflation had not yet been brought under control. A quarter-point hike from the current roughly 3.6% rate was seen by traders as roughly 90% likely after an August inflation report showed core prices, excluding food and energy, ticking up again, compounded by rising oil and gas costs tied to the reignited Iran war and continued AI-driven data-center investment pushing up longer-term rates. Trump, who has demanded lower rates ahead of the midterms, said the US 'should be paying the lowest interest rate in the world,' while adviser Kevin Hassett said Trump '100% respects' Warsh's independence even as he separately cautioned against a hike so close to the election.
Follow this story on the globe
As it ran
17 September 2026
16 September 2026
- Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut AP
- Why has the Federal Reserve raised interest rates? BBC News