# Fed Set to Hike Rates in Direct Defiance of Trump

- URL: https://twotakes.us/stories/fed-set-to-hike-rates-in-direct-defiance-of-trump
- Published: 2026-09-16T13:10:07.481431+00:00
- Topics: federal-reserve, interest-rates, inflation, economy, trump

## What the left says
- Kevin Warsh's own hawkish Jackson Hole remarks about unfinished inflation-fighting business set up an expectation that he'd have to follow through with a hike, regardless of political pressure.
- The rate decision underscores that inflation, driven partly by the Iran war's effect on oil and gas prices, remains stubbornly above the Fed's 2% target and demands a serious policy response.
- Trump's public pressure campaign for a rate cut, including comments from adviser Kevin Hassett suggesting the president 'will have an opinion,' raises concerns about political interference with the Fed's independence.
- The timing so close to the midterm elections heightens scrutiny of whether the central bank can act on economic data alone without appearing to bow to or defy the White House.

## What the right says
- Trump has largely refrained from personally attacking Warsh the way he did Powell, showing restraint and respect for the Fed chair he himself nominated.
- Rising prices, especially gas and diesel costs tied to the Iran war, are hurting American consumers, and Trump's push for lower rates reflects a desire to ease borrowing costs and support growth.
- Trump's advisers frame his comments as an expression of opinion rather than an attempt to override the Fed's independence, noting he has said Warsh should simply 'do his own thing.'
- A rate hike would mark a reversal from earlier 2026 forecasts of a cut, reflecting how unpredictable conditions like the Iran war have scrambled economic planning for everyone, including the administration.

## Common ground
- Inflation rose to a 3.4% annual rate in August, above the Fed's 2% target.
- The Iran war has pushed oil, gas, and diesel prices higher, contributing to inflation pressures.
- Markets and most economists expect the Fed to raise its benchmark rate by a quarter point to 3.75%-4%, the first hike in more than three years.
- A rate increase would raise borrowing costs for consumers on cars, credit cards, and business loans.

## Sources
- [NBC News](https://www.today.com/video/federal-reserve-poised-to-raise-interest-rates-what-to-know-269957189612) (Lean Left)
- [NBC News](https://www.nbcnews.com/business/economy/trump-federal-reserve-warsh-interest-rates-rcna597896) (Lean Left)
- [New York Times](https://www.nytimes.com/2026/09/16/business/economy/federal-reserve-interest-rates-warsh.html) (Lean Left)
- [New York Times](https://www.nytimes.com/2026/09/16/business/fed-inflation-stocks-bonds.html) (Lean Left)
- [NPR](https://www.npr.org/2026/09/16/g-s1-143569/up-first-newsletter-fed-reserve-interest-rates-iran-war-kennedy-center-contraception) (Lean Left)
- [NPR](https://www.npr.org/2026/09/16/nx-s1-5968724/federal-reserve-interest-rates-inflation-economy) (Lean Left)
- [PBS NewsHour](https://www.pbs.org/newshour/economy/watch-live-warsh-holds-briefing-after-fed-meeting-as-interest-rates-expected-to-rise) (Lean Left)
- [The Hill](https://thehill.com/homenews/state-watch/6091920-live-trump-whatley-north-carolina-warsh-fed-interest-rates/) (Center)
- [The Hill](https://thehill.com/business/6090682-fed-chair-warsh-interest-rate-decision/) (Center)

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