Overview
- The Federal Open Market Committee voted unanimously on Wednesday, Sept. 16, to raise the federal funds rate by 25 basis points to a 3.75%–4.00% target range.
- Chair Kevin Warsh said inflation remains too high, called the move a removal of accommodation, and stressed the Fed’s institutional independence.
- Fed projections show most policymakers expect at least one more quarter-point increase this year, reflecting concern that core and total PCE inflation are running well above the 2% goal.
- President Trump posted on Truth Social that rates should be cut to “1%, or less,” later told reporters he still backs Warsh, and criticized what he called a “hostile” Fed board.
- Analysts say higher energy costs tied to the U.S.-Iran war and shifting tariff policy have complicated the inflation outlook and that cutting rates to the level the president seeks would conflict with the Fed’s price-stability mandate.