The usual post-rate-hike ritual! Trump blasts the Fed, fuming that "rates should be at 1% or lower."

Notice that after the Federal Reserve ignored his repeated calls to lower borrowing costs and announced a 25 basis point rate hike, U.S. President Trump demanded lower interest rates. In a social media post on Wednesday, Trump said U.S. interest rates "should be at 1%, or lower," because "our country is booming with new investment" and has "the best credit in the world." "Lower the rates for the United States of America, and do it NOW!" he posted. The Federal Open Market Committee (FOMC) voted unanimously to raise the benchmark federal funds rate to a range of 3.75% to 4%. The move could strain the relationship between Trump and his hand-picked Fed chairman, Kevin Warsh. Although the president's post did not name Warsh, his attack increased pressure on the Fed chairmanearlier this year at his swearing-in ceremony, Trump had encouraged Warsh to be "completely independent." Bringing rates down to the level Trump wants would require the Fed to cut rates sharply, and such a move usually comes only with a severe economic crisis. Trump continued to argue that interest rates have put the United States at a competitive disadvantage relative to other economies in the world, and linked it to the U.S. trade deficit, saying "we are practically 'carrying' every country in the world, and this cannot continue." In the past, Trump has threatened to cut off trade with partners that run trade surpluses unless the Fed lowers rates. It is unclear how carrying out that threat would bring lower borrowing costs for Americans. Wednesday's rate hike was the first since 2023, against the backdrop of policymakers losing confidence that inflation would cool on its own. After recent data showed U.S. consumer prices rose more than expected in August, a Fed rate hike was already expected by the market. The war between the United States and Irannow in its seventh monthhas pushed up energy prices, and together with Trump's tariff policies, has clouded the outlook for the Fed's inflation target. In their post-meeting statement, officials said inflation remains elevated, but also described the economy in positive terms: productivity gains, strong CKH HOLDINGS capital investment, and job growth keeping pace with the size of the labor force. At his press conference, Warsh pointed to geopolitical risks as one of the drivers of inflation. "The hotspots around the world cannot be avoided, and our judgment about what is most likely and least likely to happen in the geopolitical situation has changed," he said. Warsh has vowed to defend the Fed's independence, even as he faces growing pressure from the presidentwho is deeply frustrated by the worsening political climate for Republicans ahead of the midterm elections. Voters give Trump poor marks on the Iran war and the economy, and high prices for health care, housing, energy and groceries are top issues in the November elections. Lower borrowing costs could help Trump and Republican lawmakers argue that an economic boost is coming, which could help limit election losses. Trump was harsh toward Warsh's predecessor, former Chairman Jerome Powell, and often attacked him for not cutting rates more aggressively. He has also pressured the Fed in other ways, including trying to fire Governor Lisa Cook, a move that has so far been blocked by the Supreme Court.