After the Fed raised rates, is President Trump right to demand U.S. interest rates be cut to 1% or lower?
On September 16, 2026, the Federal Reserve raised interest rates for the first time since 2023 and signaled another hike may come this year, while President Trump demanded rates instead be cut to 1% or lower.
There are very good reasons for an independent Fed. Its mandate is clear: price stability and maximum employment. Interest rate decisions should follow the data, not the will of the president. History shows that politicizing monetary policy leads to bad outcomes. Hands off, POTUS.
Are you familiar with "The Creature from Jekyll Island"? History shows that flipping democracy the bird doesn't prevent politicization (look no further than the SCOTUS), and that's only the beginning of what's wrong with it. I'm not saying Trump's involvement would be for the better, but the whole reason he's the President to start with is public desperation, fury, and disgust at being shut out of what's supposed to be OUR government, and the Fed is a fine example. "No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time." - Winston Churchill
Had to look up the Jekyll Island reference :) ... The Fed isn’t above government. It operates under a mandate from Congress. Independence is about who makes day-to-day rate decisions. Making the Fed more responsive to presidential pressure seems more likely to politicize it, not less.
I did acknowledge that the specific "alternative" being mentioned here seemed unlikely to deliver improvement, my point was only that the Fed doesn't deserve defending. With respectful apologies to The Broad-Brimmed Wanderer, the enemy of my enemy is not necessarily my friend.