Trump Demands Interest Rates Cut to 1% or Lower.

The Federal Reserve raised its benchmark rate to a target range of 3.75%-4% on Wednesday. Trump responded hours later by demanding rates of 1% or lower.

• 12 members of the Federal Open Market Committee voted unanimously for the hike.
• 3.4% consumer price growth over the year through August drove the Fed's decision.
• $6.31 a gallon: diesel hit an all-time high Wednesday, per AAA.
• Fed projections show one more quarter-point increase expected before year-end.

Why it matters: Higher rates raise borrowing costs for consumers and businesses. They also increase the cost of servicing the national debt, which surpassed $40 trillion in August.

• $96 billion: the U.S. government's monthly interest payment on that debt.
• Wages have trailed price growth since April, squeezing household budgets even as the administration describes the economy as booming.

How 41 sources split on this story

Where they split: The core dispute is whether cutting rates would help working Americans or ignite inflation that is already elevated.

What’s next: Fed Chair Kevin Warsh declined to discuss any conversations with Trump at Wednesday's press conference.

• Warsh told senators at his confirmation hearing he would be strictly independent of White House pressure.
• Will Trump escalate trade threats as leverage against future Fed decisions?
• How will markets respond if the Fed follows through on a second rate hike before year-end?
• Will 10-year Treasury yields — already above 5% — continue rising despite Trump's claims about U.S. creditworthiness?