Trump’s failed Fed takeover

On September 16, 2026, Federal Reserve chair Kevin Warsh led a news conference stating that the Federal Reserve had voted to raise interest rates by a quarter of a percent due to persistent inflation. This interest rate hike was widely anticipated, yet it represented a direct challenge to President Donald Trump, who had been demanding rate cuts throughout the past year and a half and had plotted a Fed takeover to achieve his goal.

Trump's attempts to influence the Fed included efforts to remove Fed governor Lisa Cook and a criminal investigation against former Fed chair Jerome Powell, both of which had failed. Despite Warsh's confirmation as Fed chair in May and his subsequent vote for the rate increase, Trump's response was initially restrained, although he had previously threatened to suspend trade relations with countries facing trade deficits if the Fed proceeded with the hike.

It remains unclear whether Trump will follow through on this threat, but his ongoing feud with the Fed continues.