Federal Reserve increases interest rates despite presidential opposition

On September 16, 2026, the Federal Reserve (Fed) unanimously decided to increase interest rates by 0.25 percentage points, raising them to a range of 3.75-4%. This marks the first rate hike since the summer of 2023, aimed at curbing inflation. Following two days of closed-door meetings, the board also revised its end-of-year inflation forecast to 3.7%, up from the previous estimate of 3.6%.

The decision was supported by Kevin Warsh, the new central bank chief appointed by U.S. President Donald Trump earlier this year. Despite the unanimous board vote, the move faced strong opposition from the President. Trump publicly labeled the Federal Reserve as "hostile" and accused the board of raising rates for political reasons intended to harm his administration. Reuters reports that the unanimous nature of the vote reflects a broader institutional acknowledgement of the government's inability to control current inflationary trends.

Looking ahead, the Fed has signaled that further tightening is necessary to combat inflation, with plans to potentially increase rates to 4-4.25% by the end of the year. President Trump has avoided personal attacks on Warsh, attributing the hike to the broader influence of the "hostile" board members.