# Trump-Appointed Fed Chair Defies Trump, Hikes Interest Rates - URL: https://twotakes.us/stories/trump-appointed-fed-chair-defies-trump-hikes-interest-rates - Published: 2026-09-17T13:12:27.536152+00:00 - Topics: federal-reserve, interest-rates, inflation, economy, trump ## What the left says - The rate hike underscores that the Fed's independence from political pressure is functioning as designed, with Warsh acting on inflation data rather than presidential demands. - Inflation has run above the Fed's 2% target for more than five years, and the war-driven surge in energy and diesel prices shows the problem is not fully resolved despite Trump's optimistic economic messaging. - Warsh explicitly stated that fiscal and trade policy should 'stay in their lane,' signaling that the Fed will not bend to political interference even from the president who appointed him. - A strong jobs market and resilient economic growth give the Fed room to prioritize price stability without fear of triggering a recession. ## What the right says - Trump argues that America's economic strength and top-tier credit standing justify historically low rates, potentially as low as 1%, to keep the boom going. - The president contends that the inflation driving this hike stems largely from external shocks like the Iran war's effect on oil prices, not from domestic policy failures under his administration. - Trump has voiced frustration that even his own appointee is following the same rate-setting instincts as his predecessor Jerome Powell, whom he repeatedly criticized as too slow to cut rates. - Markets reacted negatively immediately after the hike, with the Dow dropping over 600 points, raising concerns that tightening credit could unnecessarily slow momentum heading into the midterms. ## Common ground - The Federal Open Market Committee voted unanimously to raise the federal funds rate by a quarter percentage point to a range of 3.75% to 4%. - This marks the first rate increase since July 2023, reversing the Fed's recent cutting cycle from late 2024 and 2025. - Both the Fed and Trump acknowledge that energy prices, driven in part by the Iran war, have contributed to rising inflation. - The economy is showing solid job gains, strong productivity, and resilient consumer spending even as inflation remains above the Fed's 2% target. ## Sources - [AllSides](https://www.allsides.com/news/2026-09-16-0700/economy-and-jobs-fed-raises-interest-rates-first-time-2023-defying-trump-inflation-mounts) (Center) - [AllSides](https://www.allsides.com/news/2026-09-16-0700/economy-and-jobs-federal-reserve-hikes-interest-rates-first-time-2023-amid-stubborn-inflation) (Center) - [Blaze Media](https://www.theblaze.com/news/new-fed-chair-bucks-trump-hikes-interest-rate-as-inflation-fears-persist) (Right) - [Breitbart](https://www.breitbart.com/politics/2026/09/16/trump-says-interest-rates-should-be-1-or-less-after-feds-first-hike-in-3-years/) (Unknown) - [Breitbart](https://www.breitbart.com/economy/2026/09/16/federal-reserve-raises-interest-rates/) (Unknown) - [CBS News](https://www.cbsnews.com/news/fed-interest-rate-decision-today/) (Lean Left) - [CBS News](https://www.cbsnews.com/video/fed-raises-interest-rates-sign-concern-rising-prices-inflation-too-high/) (Lean Left) - [Daily Caller](https://dailycaller.com/2026/09/16/p) (Right) - [Daily Wire](https://www.dailywire.com/news/president-trump-wanted-a-rate-cut-the-fed-gave-him-a-rate-hike) (Right) - [Forbes](https://www.forbes.com/sites/fionariley/2026/09/16/fed-raises-interest-rates-for-first-time-in-three-years-as-inflation-stays-high-clashing-with-trump/) (Lean Right) - [NBC News](https://www.nbcnews.com/nightly-news/video/fed-raises-interest-rates-269999685977) (Lean Left) - [Newsmax](https://www.newsmax.com/politics/Trump-Pushes-Back-After-Fed-Raises-Rates-to-Fight-Inflation/2026/09/16/id/1269688) (Right) - [New York Times](https://www.nytimes.com/2026/09/16/business/economy/federal-reserve-interest-rates-warsh.html) (Lean Left) - [The Guardian US](https://www.theguardian.com/business/2026/sep/16/us-federal-reserve-votes-hike-rates) (Left) - [The Hill](https://thehill.com/homenews/administration/6094047-warsh-defies-trump-rate-cut/) (Center) - [The Hill](https://thehill.com/business/6093135-fed-raises-interest-rates/) (Center) - [Townhall](https://townhall.com/news/cameron-arcand/2026/09/16/trump-blasts-federal-reserve-for-hiking-interest-rates-n2683101) (Right) - [Townhall](https://townhall.com/news/cameron-arcand/2026/09/16/federal-reserve-hikes-rates-for-first-time-in-years-bucking-trumps-concerns-n2683086) (Right) - [Washington Times](https://www.washingtontimes.com/news/2026/sep/16/fed-raises-rates-quarter-point-tame-inflation-risking-trumps-ire/) (Right) --- Content by TwoTakes (https://twotakes.us). 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