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MACROFederal Reserve lifts rates for first time since 2023 as Kevin Warsh rebuffs TrumpSep 17DEALSTRIN declares $0.17 monthly cash dividend, ex-date December 11Sep 17EARNINGSAugust retail sales jump 1.2%, beat forecast and sharpen Fed rate-hike caseSep 17CRYPTOAlgorand price predictions put 2030 target as high as $0.812 as ALGO sits in fear territorySep 17JPMJPMorgan flags 'extremely narrow' window for Clarity Act crypto billSep 17WORLDTrump reaffirms confidence in Fed's Warsh, presses for rates at 1% or lowerSep 17CRMSnap's Spectacles workplace push draws Salesforce (CRM) and Nvidia (NVDA) into the stackSep 16DEALSFSU moving-truck rumor collapses as Norvell's nearly $50 million buyout stands unchangedSep 16WORLDTrump demands 1% rate after Fed's first hike since 2023Sep 16EARNINGSJ.B. Hunt shares sink 13% on third-quarter earnings warningSep 16MACROFederal Reserve lifts rates for first time since 2023 as Kevin Warsh rebuffs TrumpSep 17DEALSTRIN declares $0.17 monthly cash dividend, ex-date December 11Sep 17EARNINGSAugust retail sales jump 1.2%, beat forecast and sharpen Fed rate-hike caseSep 17CRYPTOAlgorand price predictions put 2030 target as high as $0.812 as ALGO sits in fear territorySep 17JPMJPMorgan flags 'extremely narrow' window for Clarity Act crypto billSep 17WORLDTrump reaffirms confidence in Fed's Warsh, presses for rates at 1% or lowerSep 17CRMSnap's Spectacles workplace push draws Salesforce (CRM) and Nvidia (NVDA) into the stackSep 16DEALSFSU moving-truck rumor collapses as Norvell's nearly $50 million buyout stands unchangedSep 16WORLDTrump demands 1% rate after Fed's first hike since 2023Sep 16EARNINGSJ.B. Hunt shares sink 13% on third-quarter earnings warningSep 16
NewsMacro

Federal Reserve lifts rates for first time since 2023 as Kevin Warsh rebuffs Trump

The Federal Reserve raised interest rates for the first time since 2023, a decision that puts chair Kevin Warsh in open conflict with President Donald Trump, who had called on the central bank to lower borrowing costs. The next policy meeting is where this hiking path either extends or stalls.

By Renata OstrowskiNewsroomSeptember 17, 20262 min read
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Key takeaways

  • The Federal Reserve raised interest rates for the first time since 2023.
  • Fed chair Kevin Warsh made the decision despite President Donald Trump's calls to lower borrowing costs, putting the two in open conflict.
  • The rate hike revises the prior market consensus that tightening had finished.
  • It is unclear whether the increase is a single corrective move or the start of a new hiking sequence.
  • The White House's response and the Fed's next policy meeting are the key developments to watch.

The Federal Reserve raised interest rates for the first time since 2023, a decision that puts chair Kevin Warsh in open conflict with President Donald Trump, who had called on the central bank to lower borrowing costs. The next policy meeting is where this hiking path either extends or stalls.

Fed independence has been contested political territory, and Warsh's decision lands that contest in concrete policy. Trump's calls to cut rates applied external pressure to an institution that treats its separation from political influence as a structural necessity. Warsh moved the other direction.

Consensus had positioned around the idea that tightening was finished. This print revises that framing. How far the Fed takes rates from here, and whether this is a single corrective move or the start of a new sequence, remains open. The White House's response to the decision is the secondary development to track ahead of Warsh's next meeting.

About this story

Filed by the newsroom of MarketPR on September 17, 2026. Source: ft.com. Indicative figures are not investment advice.

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Frequently asked

When did the Federal Reserve last raise interest rates before this decision?

This was the first rate increase since 2023.

Why is this decision in conflict with President Trump?

Trump had called on the central bank to lower borrowing costs, but Warsh moved in the opposite direction by raising rates.

Does this hike mean more rate increases are coming?

That remains open; it is unclear whether this is a single corrective move or the start of a new sequence, which the next policy meeting will determine.

What should observers watch next after this decision?

The White House's response and Warsh's next policy meeting, where the hiking path either extends or stalls.