Trump Criticizes FED Hike to 3.75-4%; Rates Rise 0.25% to Combat Inflation
- Reports
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- Developments
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- Repetition
- 81%
New informationRepeats or wire copies
What happened
The Federal Reserve announced a unanimous decision to hike interest rates by 0.25 percent, marking the first increase since 2023. The target range was set at 3.75-4 percent, with the FOMC stating that inflation remains elevated. President Donald Trump publicly disagreed with the hike, demanding the Fed lower rates instead, arguing that the U.S. should be at 1% or less due to its strong economic standing.
From townhall.com, mainemirror.com
Why it matters
The rate hike comes despite the President's repeated demands for lower borrowing costs. The Fed stated the increase aims to support a timely return to its 2 percent inflation goal. The announcement followed a period where technology shares had been driving market rallies, leading to mixed market digestion of the policy shift.
From townhall.com, mainemirror.com
Who's involved
- Donald TrumpPresident of the United States and critic of the FED's monetary policy.
- Jerome PowellPresident of the FED and leader of the policy-setting body.
- FEDThe central banking institution whose policy is being debated.
- Federal Open Market CommitteeThe committee responsible for setting the FED's interest rate targets.
How it developed
Newest first. Tap a step to see who reported it.Trump claims Iran is finished and will receive no money.1 source
Trump criticized Powell on rate cuts; hawkish tilt caused market selloff; U.S.-Iran MOU impacted oil prices.1 source
Trump criticized Jerome Powell for the FED keeping interest rates steady at 3.6%.1 source
Technology shares drove a broad market rally as Fed comments signaled the end of the tightening cycle.1 source
Trump criticized Powell over the Federal Reserve's reluctance to cut interest rates.1 source
Keep exploring
The entities involved
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
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Jerome Powell
president of the FED
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FED
business
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Nasdaq
American fully electronic stock exchange
Related events
- Jerome Powell hinted at potential interest rate cuts on August 27, 2025, causing the FED's rate cut prospect to ease market concerns, leading to specific market actions by Rankin and Sprout Social.
- Donald Trump pressured the Federal Reserve chief to lower interest rates.
- Jerome Powell hinted at rate cuts on August 23, 2025, which boosted market optimism for the company Revolve.
- Dovish comments made on August 26, 2025, suggested potential interest rate cuts, easing borrowing cost concerns involving the FED and Jerome Powell.
- Jerome Powell's comments regarding monetary policy were discussed on August 29, 2025, in the context of thematic investing and their impact on companies like Agilent Technologies and Microsoft.
Coverage
Newest first; wire copies grouped- townhall.com
- mainemirror.com
- investinglive.com
- investmentnews.comKevin Warsh's second Fed meeting: Hold steady or hike? Strategists split
- theglobeandmail.com
- straitstimes.com
- azernews.az
- yahoo.com
- wpxi.com
- clevelandstar.com
- ohiostandard.com
- channelnewsasia.com