President Donald Trump criticized the Federal Reserve on September 16 after the central bank unanimously raised the federal funds rate by 25 basis points, taking its target range to 3.75%-4.00%. The increase was the first since 2023 and came weeks before midterm elections that will determine whether Republicans retain control of Congress. Trump called for rates of 1% or less and urged cuts to come fast, while describing the Federal Open Market Committee (FOMC), the Fed body that sets monetary policy, as hostile and political. The unanimous vote included Fed Chair Kevin Warsh, whom Trump appointed, despite the president’s earlier advice that Warsh vote with the board because his individual position would not matter. The Fed’s move reflects inflation readings that have remained between 3.4% and 4.2%, above its 2% target, with energy price increases linked in part to the ongoing conflict in Iran. Higher rates can reduce demand by making borrowing more expensive, but they do not directly resolve supply-driven energy disruptions. Mortgage rates typically move closely with Treasury yields, raising borrowing costs for homebuyers. Trump’s criticism also shifts responsibility for any economic slowdown away from his administration’s fiscal and trade policies and toward the Fed, with the political impact to be tested by voters heading into November.