US President Donald Trump posted on Truth Social at 3:38 a.m. on September 17, 2026, Thailand time, calling for the US interest rate to be cut to 1% or lower, after the Federal Reserve voted to raise rates by 0.25% to a range of 3.75–4.00%. Trump said US rates should be at 1% or below because the United States clearly has the best credit standing in the world, while the country is booming from new investment. He also said that if the United States stopped trading with every country with which it runs a trade deficit, which is most countries, the US would make at least 1.5 trillion dollars a year, and he said the word "deficit" is just a fancy-sounding term for "loss." Earlier, on January 30, 2026, Trump announced he had chosen and nominated Kevin Warsh to serve as Fed chair, succeeding Jerome Powell, whose term ends in May 2026, amid expectations that Warsh would support a rate-cutting approach. However, Warsh has previously insisted during his US Senate confirmation hearing that he made no promise to Trump to cut rates, and he stressed the Fed's independence in conducting monetary policy.
Fed raised rates 0.25% to 3.75-4.00%, pushing the effective fed funds rate higher, while Trump demanded a cut to 1%.
The Fed's rate hike lifts short-term policy rates, which typically pushes 10Y Treasury yields higher as well.
