The usual post-rate-hike ritual! Trump blasts the Fed, fuming that "rates should be at 1% or lower."

Noting that US President Donald Trump demanded lower interest rates after the Federal Reserve ignored his repeated calls to reduce borrowing costs and announced a quarter-point rate hike. In a social media post on Wednesday, Trump said US rates "should be at 1%, or lower" because "our Country is BOOMING with new investment" and has "the best credit in the world." "LOWER THE RATES FOR THE UNITED STATES OF AMERICA, AND DO IT NOW!" he posted. The Federal Open Market Committee (FOMC) voted unanimously to raise the benchmark federal funds rate to a range of 3.75% to 4%. The move threatens to strain relations between Trump and his hand-picked Fed chair, Kevin Warsh. While the president's post did not name Warsh, his attack intensifies pressure on the Fed chair whom Trump had encouraged to be "totally independent" at his swearing-in ceremony earlier this year. Bringing rates down to the level Trump wants would require the Fed to cut aggressively, a move typically seen only alongside a severe economic crisis. Trump continued to argue that interest rates have put the US at a competitive disadvantage relative to other economies around the world, tying it to the US trade deficit and saying "we are 'carrying' virtually every Country in the world, and that can't continue any longer." In the past, Trump has threatened to cut off trade with partners that run trade surpluses unless the Fed lowers rates. It is unclear how following through on that threat would deliver lower borrowing costs for Americans. Wednesday's hike was the first since 2023, coming as policymakers lost confidence that inflation would cool on its own. The increase had been expected by markets after recent data showed US consumer prices rose more than anticipated in August. The US war with Iran now in its seventh month has pushed up energy prices, and together with Trump's tariff policies has clouded the outlook for the Fed's inflation target. In their post-meeting statement, officials said inflation remained elevated, but also described the economy in positive terms: productivity gains, strong CKH HOLDINGS capital investment, and job growth keeping pace with the labor force. At his press conference, Warsh pointed to geopolitical risk as one of the drivers of inflation. "Hot spots around the world cannot be avoided, and our judgment about what is most likely and least likely to happen in the geopolitical landscape has changed," he said. Warsh has vowed to defend the Fed's independence, even as he faces mounting pressure from the president who is deeply frustrated by a deteriorating political climate for Republicans ahead of the midterm elections. Voters rate Trump poorly on the Iran war and the economy, and high prices for healthcare, housing, energy and groceries are top issues in the November elections. Lower borrowing costs could help Trump and Republican lawmakers argue that an economic boost is coming, helping to limit election losses. Trump was harsh toward Warsh's predecessor, former chair Jerome Powell, frequently attacking him for not cutting rates more aggressively. He has also pressured the Fed in other ways, including attempting to fire Governor Lisa Cook, a move that has so far been blocked by the Supreme Court.