Trump Urges Fed to Cut Rates to 1% After Benchmark Lifted to 3.75%–4%

President Donald Trump on Wednesday called on the Federal Reserve to slash interest rates to 1% or below, shortly after the central bank raised its benchmark to 3.75%–4%. The increase, led by Fed Chair Kevin Warsh, marked the Fed's first rate hike since 2023. The Federal Open Market Committee approved the move unanimously. New projections show 16 of 18 officials expect at least one additional hike before year-end, a shift from the outlook released in July. The committee also removed language that had attributed part of inflation to supply shocks, and said the latest hike is intended to speed a return to its 2% inflation goal. Trump voiced his criticism on Truth Social within hours of the decision, arguing the U.S. should have near-zero borrowing costs because of its credit standing. He also said reducing trade with countries running surpluses with the U.S. could add at least $1.5 trillion per year to federal revenue. He has made similarly large claims in the past, and fact-checkers have described such figures as overstated. The comments revive a dispute Trump had largely kept on the back burner since Warsh replaced Jerome Powell as Fed chair. The leadership change has not produced any rate cuts so far. Trump has previously threatened to curtail trade with surplus countries if the Fed does not ease policy, a stance that would affect many of the United States' largest trading partners. He reiterated similar demands earlier in September as expectations for a hike increased amid added pressure from the midterms. White House spokesman Kush Desai told Fox News that Trump still "absolutely" believes in the Fed's independence, even as he continues to apply public pressure. Bitcoin and Gold React Bitcoin jumped in the minutes following Wednesday's decision, though it remained lower on the day. Gold also spiked before giving back gains, according to BeInCrypto's Wednesday coverage. With markets still pricing in another hike this year, Warsh's next press conference could shape whether Trump's pressure campaign intensifies.