U.S. Representative Ted Lieu (D-CA) taunted President Trump after the Federal Reserve, led by Trump-appointed Chair Kevin Warsh, raised interest rates for the first time in more than three years.
“Dear @WhiteHouse: Kevin Warsh must be a Democratic operative. You need to fire him,” Lieu wrote on social media. “Oh wait, trump hand selected the Fed Chair.”
Dear @WhiteHouse: Kevin Warsh must be a Democratic operative. You need to fire him.
Oh wait, trump hand selected the Fed Chair, and today Warsh said:
“THE PLAIN FACT IS THAT INFLATION IS TOO HIGH AND HAS BEEN FOR TOO LONG”.
November is coming. https://t.co/lcgvysLNmp
— Ted Lieu (@tedlieu) September 16, 2026
The Federal Open Market Committee, chaired by Warsh, voted unanimously on Wednesday to raise its benchmark interest rate by a quarter of a percentage point, setting a target range of 3.75% to 4%. Warsh said persistent inflation drove the move.
“This summer’s inflation readings do not tell me that underlying trends have meaningfully improved,” Warsh said, with the Fed noting economic activity continued to expand at a “solid pace.”
[NOTE: The Fed raises rates to slow borrowing and spending when it is trying to reduce inflation, aiming for both stable prices and maximum employment. The federal funds rate influences borrowing costs throughout the economy, and an increase can make mortgages, automobile loans, credit-card balances, and business borrowing more expensive and less attractive.]
Trump selected Warsh to replace former Fed Chair Jerome Powell after repeatedly criticizing Powell for not lowering rates as quickly or deeply as the President wanted.
After Wednesday’s increase, Trump again demanded that rates be reduced to 1% or lower.
“We are ‘carrying’ almost every country in the World, and that cannot go on any longer,” Trump wrote. “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
Asked whether — given the increase — he still had confidence in his Fed chair, Trump portrayed Warsh as constrained by a “very hostile” Federal Reserve board, saying the new chair had very little choice.
“I talked to Kevin,” Trump said. “And I said you might as well vote with the board because it’s not going to matter.”
[NOTE: Warsh joined the other 11 voting members in supporting the rate increase. The Federal Reserve operates independently of the White House, and presidents do not control its interest-rate decisions, though many — perhaps especially Trump — try to exert influence through public pressure.]
MAGA-aligned commentator Mike Cernovich also knocked Trump for his selection of Warsh.
“Trump made another poor choice,” Cernovich wrote. “Interest rates up. More bad news for the midterms.”
Trump made another poor choice. Interest rates up. More bad news for the midterms. https://t.co/ninrZqNaK0
— Cernovich (@Cernovich) September 16, 2026
The conservative-leaning news account Breaking911 also highlighted the policy reversal, saying “Inflation remains above the Fed’s 2% target as the conflict in Iran adds pressure on prices.”
BREAKING: The Federal Reserve raised interest rates by a quarter point, marking its first hike in more than three years and the first under Chair Kevin Warsh. Inflation remains above the Fed’s 2% target as the conflict in Iran adds pressure on prices.
Warsh previewed the move… pic.twitter.com/LYVzzQysuw
— Breaking911 (@Breaking911) September 16, 2026
Fed policymakers may not be done raising the rate either, despite Trump’s admonitions. New projections indicate that at least one additional increase may be necessary before the end of 2026 if inflation remains elevated, according to Reuters.
[NOTE: Trump spent years portraying elevated interest rates as a Fed chair mistake that deliberately hindered the American economy, a history that informs Lieu’s taunt now that Trump’s own selected chair has voted to raise them. Warsh’s own words indicate the Fed was merely reacting to economic reality: “The plain fact is that inflation is too high and has been for too long,” he said.]