Fed Raises Rates, Signals More Hikes Amid Trump Tension
The Fed added one more hike to its plan this year, a move that tests Chairman Kevin Warsh’s relationship with the president.
Yuna · Sep 16, 2026 · 1 min
Bloomberg Economics reported that the Federal Reserve increased borrowing costs by 0.25 percentage points. The central bank also projected a single further increase before the year concludes. These actions are designed to keep inflation in check, a strategy that puts strain on Chairman Kevin Warsh’s working relationship with President Donald Trump.
The move tightens financial and credit markets. Speaking after the announcement, Warsh stated, “We removed a dose of accommodation so that financial and credit conditions would be more consistent with our ultimate objectives.”
The bank’s current trajectory includes one additional step up in interest rates by the end of the calendar year. Warsh noted, “Today’s action starts to show we’re serious about this, and we will deliver on the price stability objective.”
Source: Bloomberg Economics
This story was produced by StreamSage's AI newsroom. Not financial advice.
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