Sep 17, 2026 · 21 min
Fed hike tests Trump’s tolerance for higher borrowing costs
Trump Attacks Fed Hike, Suggests Tariffs on Europe
The episode connects a unanimous Fed rate increase to inflation risks, possible further hikes, and widening political pressure on monetary policy.
- 1The Fed’s unanimous quarter-point increase reflects concern that inflation remains elevated for too long.
- 2Jennifer Lee weighs whether energy prices and inflation expectations could prompt another hike later this year.
- 3Trump’s tariff threats broaden the episode’s economic stakes from borrowing costs to trade, energy, and Russia sanctions.
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Jennifer Lee explains why energy prices and inflation expectations could keep another Fed hike in play despite the political backlash.
The brief
Donald Trump attacks the Federal Reserve’s unanimous quarter-point rate increase, while Chair Kevin Warsh says inflation remains too high and above target for too long.
The episode widens from monetary policy to tariffs on Europe and Canada, Russia sanctions, Middle East oil disruptions, and technology competition with China.
Jennifer Lee of BMO Capital Markets assesses whether the Fed’s hike was hawkish, focusing on energy prices, inflation expectations, and the possibility of another increase.
The central tension is whether persistent inflation justifies more tightening even as political criticism intensifies and higher borrowing costs spread through the economy.
The episode closes its main analysis with markets weighing whether October or December could bring another hike, leaving the Fed’s next move unresolved.
Featuring
Mentioned
Donald John Trump
Kevin Maxwell Warsh
Apple Inc.
National Transportation Safety Board
Mike JohnsonListen to the full episode and explore every guest, topic, and moment on PodLume.