Trump’s Tariff Threat Over Fed Rate Decision ‘Makes No Economic Sense,’ Says Justin Wolfers: Kevin Warsh 'Called His Bluff’
Following the Federal Reserve’s decision to hike rates by 25 basis points, economist Justin Wolfers criticized President Donald Trump for threatening trade tariffs in response to central bank policy, stating the linkage “makes no economic sense.” Policy Defiance Wolfers highlighted the full consensus within the central bank as evidence that policy reflected economic data rather than political pressure. “Threatening tariffs on other countries because the Fed made a domestic rate decision makes no economic sense, and today’s vote made the point for me: 12 out of 12 FOMC members voted for this hike,” Wolfers stated. Threatening tariffs on other countries because the Fed made a domestic rate decision makes no economic sense, and today's vote made the point for me: 12 out of 12 FOMC members voted for this hike. pic.twitter.com/JfXPs2dX29 — Justin Wolfers (@JustinWolfers) September 17, 2026 Read Also: Elon Musk Once Said Psychedelics Could Help PTSD — Now FDA Holds Hearing as Optimi Health Advances MDMA Trial Tariff Threat Reaction Prior to the meeting, President Trump posted demands for rates at 1% or less, threatening to stop trade with deficit nations if rates remained high. Wolfers d
” Policy Defiance Wolfers highlighted the full consensus within the central bank as evidence that policy reflected economic data rather than political pressure. “Threatening tariffs on other countries because the Fed made a domestic rate decision makes no economic sense, and today’s vote made the point for me: 12 out of 12 FOMC members voted for this hike,” Wolfers stated. Threatening tariffs on other countries because the Fed made a domestic rate decision makes no economic sense, and today's vote made the point for me: 12 out of 12 FOMC members voted for this hike.
com/JfXPs2dX29 — Justin Wolfers (@JustinWolfers) September 17, 2026 Read Also: Elon Musk Once Said Psychedelics Could Help PTSD — Now FDA Holds Hearing as Optimi Health Advances MDMA Trial Tariff Threat Reaction Prior to the meeting, President Trump posted demands for rates at 1% or less, threatening to stop trade with deficit nations if rates remained high. Wolfers dismissed the ultimatum, observing that trade deficits and domestic borrowing costs operate on unrelated economic principles. ": @ErinBurnett ’s stunned reaction after Trump claims he told Fed Chair Kevin Warsh to "go ahead and vote" to raise interest rates after months of pushing to lower rates. 00%.
All 12 voting members of the Federal Open Market Committee supported the increase. The quarter-point increase represents the Federal Reserve’s first rate hike since 2023. Newly appointed Chair Kevin Warsh joined every voting member—including committee officials appointed by former Presidents Barack Obama, Joe Biden, and Donald Trump—in approving the policy move. The decision came despite explicit demands from the White House to slash interest rates to lower levels.
2% likelihood of the Federal Reserve hiking interest rates after its October meeting. How Have Stock Markets Performed in 2026? 32% year-to-date. 07% YTD.
On Wednesday, the SPDR S&P 500 ETF Trust (NYSE: SPY ) and Invesco QQQ Trust ETF (NASDAQ: QQQ ), which track the S&P 500 and Nasdaq-100, respectively, closed mixed. 72. 22. 77%.
Read Also: 'Stickier Inflation' Is Here, Market Strategist Warns After August CPI — 'One-Time Event' Narrative Takes a Hit Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Photo courtesy: Shutterstock