# Trump calls Fed rate hike a personal attack

> President Trump views the Federal Reserve's inflation-fighting decision as political retaliation, despite inflation running above target for five years.
- Title: Trump calls Fed rate hike a personal attack · Fortune
- Summary: President Trump views the Federal Reserve's inflation-fighting decision as political retaliation, despite inflation running above target for five years…
- Keywords: federal reserve, kevin warsh, donald trump, interest rate hike, inflation, fomc, fed independence, monetary policy, midterm elections, Trump, calls, Fed
- Source: Fortune — https://fortune.com/2026/09/17/trump-warsh-fed-inflation-fomc-interest-rate-hike
- Author: Eleanor Pringle
- Read time: 1 min
- Topics: federal reserve, kevin warsh, donald trump, interest rate hike, inflation, fomc, fed independence, monetary policy, midterm elections
## Fed raises rates, Trump sees attack
Federal Reserve Chair Kevin Warsh announced a unanimous 25 basis point rate hike to combat inflation. President Trump immediately called it a personal attack, saying it's politically motivated.

> "The plain fact is that inflation is too high and has been for too long."
## Base rate now 3.75% to 4%
The U.S. base rate increased a quarter-percentage-point to 3.75% to 4%, moving opposite the downward direction Trump has been aggressively lobbying for.
## Warsh reassures on Fed independence
Warsh's backing of the rate hike and commitment to the Fed's 2% inflation target reassures skeptics that the central bank remains legally independent, despite Trump's nomination of him.
## Trump blames the board, not Warsh
Trump told reporters Warsh has a "very hostile" board that's "very political." He said the chairman "might as well vote with the board because it's not going to matter."

> "The board is very hostile, they're very political, they're doing the wrong thing."
## Trump frames hike as political
Trump claimed the economy is "doing so well" it can "barrel through" higher rates, then suggested the rate hike was purely political: "It's a raise against Trump."

> "It's a raise against Trump."
## Inflation stuck above 2% for five years
Inflation currently sits at 3.4%, driven partly by Middle East oil market shocks. The Fed's 2% target hasn't been met in over five years, making the rate hike economically justified.
## Warsh faces credibility test before midterms
Trump's public criticism complicates Warsh's efforts to assure markets he's acting independently. With inflation a top voter concern ahead of midterms, the Fed chair must navigate both economic reality and political pressure.
## Key takeaway

Trump's public criticism of Fed Chair Warsh undermines the central bank's independence and could complicate efforts to control inflation ahead of midterms.