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Trump reaffirms confidence in Fed's Warsh, presses for rates at 1% or lower

9/17/2026

A demand for interest rates at 1% or lower is in focus after President Donald Trump said he retains confidence in Federal Reserve Chair Kevin Warsh while pressing the central bank to cut.

The statement carries a condition Trump has previously attached: if the Fed does not act, he has threatened to sever trade with countries running surpluses against the United States.

Trump's rate target of 1% or lower is his own stated figure. The trade cutoff threat is categorical. Any nation holding a surplus against the U.S. falls within the scope of that prior warning as Trump framed it.

Confidence in Warsh and a hard rate demand now sit in the same statement, and neither cancels the other. Warsh holds the chair at the Federal Reserve.

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