Trump Fumes at US Federal Reserve Over Interest Rate Hike, Accusing Central Bank Board of Political Hostility

• by Akanksha Mishra
• 2026-09-17 14:30:00

US President Donald Trump has voiced fierce criticism against the Federal Reserve following its decision to raise the benchmark interest rate by 25 basis points to a target range of 3.75% to 4%. Marking the first interest rate hike in the US since 2023, the move aimed to cool elevated inflation amidst rapid economic growth, robust household spending, and strong capital investment. However, President Trump strongly condemned the move, accusing the central bank board of harboring a hostile attitude and intentionally driving up rates to undermine his administration ahead of political campaigns.

Trump Accuses Fed Board of Political Motives During North Carolina Campaign Rally

Speaking to reporters prior to his mid-term campaign rally in North Carolina, President Trump didn't mince words regarding the central bank's policy direction. Claiming that the board's actions were politically motivated, he remarked that officials were raising rates simply to make his presidency look bad. Trump noted that he had spoken with Fed Chair Kevin Warsh—whom he personally nominated—prior to the rate decision, telling him that voting alongside the board wouldn't change the outcome. Despite his sharp verbal attack on the broader board, Trump emphasized that he still retains confidence in Fed Chair Warsh and wants him to maintain institutional independence.

Global Trade Deficits and the Ongoing Battle Over Monetary Policy

Frustrated by the monetary tightening, Trump took to social media via Truth Social to criticize broader global trade structures, arguing that trade deficits act as a direct financial loss for the nation. Asserting that the United States is unfairly carrying the economic burden of nearly every country worldwide, he calculated that halting trade with deficit nations could save trillions annually. While the Federal Open Market Committee maintained that higher interest rates are essential to steer inflation back down toward the target 2% threshold, the escalating tension between the White House and the central bank highlights an ongoing clash over economic governance and monetary strategy.

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