# Trump Attacks Fed Hike, Suggests Tariffs on Europe

An episode of [Bloomberg Daybreak: US Edition](https://invisiblenetwork.ai/podcast/1663860720), 17 Sep 2026, 16 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/d15648c4-cee0-4e99-a5ca-af80014d921d/3a0692b6-4653-4998-b881-b4c8009e1e1f/audio.mp3?utm_source=Podcast&in_playlist=65ce2954-d8a8-4c66-9f42-af80014d923e

Today's top stories, with context, in just 15 minutes. On today's podcast: 1) The Federal Reserve raised interest rates by a quarter percentage point and plans an additional hike later this year to contain inflation. Chairman Kevin Warsh said the action shows the Fed is serious about delivering on the price stability objective and removing a dose of accommodation. The rate increase defied President Trump, who said on social media that US interest rates should be at 1% or lower and called for lower interest rates. 2) President Trump said he will put very serious tariffs or stop trading with Europe if he thinks the European Union's push to make Canada a potential associate is harmful to the US. European Commission President Ursula von der Leyen proposed Canada becoming the first associate member of the European Union, saying she would like to work with Canadian Prime Minister Mark Carney on the idea. Trump's comments risk further inflaming a simmering trade war between the US and Canada, with Trump having already imposed tariffs on Canadian goods and restricted Canadian goods from federal government purchases. 3) OpenAI shared several undisclosed incidents of its AI models misbehaving and unveiled a new framework for tracking and disclosing such occurrences going forward. The company detailed various instances of its artificial intelligence models misbehaving, including fabricating missing data and attempting to bypass network restrictions. OpenAI said it does not believe that the AI industry has solved alignment and monitoring to a sufficient degree to continue responsibly scaling at maximum speed for much longer. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio, news. Good morning, I'm Nathan Hager.
[0:11] Speaker 2: And I'm Karen Moscow. Here are the stories we're following today.
[0:16] Speaker 1: Karen, President Trump is criticizing the Fed for deciding to
[0:19] Speaker 1: raise interest rates to a range of three and three
[0:22] Speaker 1: quarters to four percent. It was a unanimous quarter point hike,
[0:26] Speaker 1: the first Fed's increase in borrowing costs in more than
[0:30] Speaker 1: three years. The president spoke to reporters about chair Kevin
[0:33] Speaker 1: Warsh and the decision.
[0:35] Speaker 3: I'm relying on Kevin, but he's got, you know, a
[0:37] Speaker 3: very tough board. He's got a board that was put
[0:39] Speaker 3: there by a lot of other people. And the interest
[0:43] Speaker 3: rates are too high. They're not appropriate. And I told
[0:47] Speaker 3: I talked to Kevin and I said, you might as
[0:49] Speaker 3: well vote with the board because it's not going to matter.
[0:52] Speaker 1: President Trump went on to say rates should be at
[0:53] Speaker 1: one percent or lower.
[0:55] Speaker 2: Kevin Warsh, Nathan, President Trump's pick to lead the Fed,
[0:58] Speaker 2: was sworn in less than four months ago. He defied
[1:01] Speaker 2: many skeptics with the rate hike.
[1:03] Speaker 4: The labor side of the Fed's congressional remit is in
[1:06] Speaker 4: good shape. Yet for more than five years, inflation has
[1:11] Speaker 4: been running above target. So our predominant focus is on
[1:16] Speaker 4: the price stability side of our mandate. The plain fact
[1:20] Speaker 4: is that inflation is too high and has been for
[1:24] Speaker 4: too long.
[1:25] Speaker 2: Traders quickly priced in additional rate increases from Warsh and
[1:28] Speaker 2: his colleagues and pushed down their expectations for inflation in
[1:32] Speaker 2: coming years. We got this reaction from former Fed regional
[1:35] Speaker 2: presidents James Bullard and Patrick Harker.
[1:38] Speaker 5: I think this is a pretty good outcome for the Fed.
[1:42] Speaker 5: You know, they got their interest rate increase in, which
[1:44] Speaker 5: I think was appropriate. Yeah, three more sounds a little
[1:47] Speaker 5: high compared to what the committee seemed to be saying.
[1:50] Speaker 5: They probably want to see more data before they commit
[1:54] Speaker 5: to that.
[1:54] Speaker 2: And former Fed regional presidents James Bullard and Patrick Harker
[1:57] Speaker 2: reacting to the Fed's rate hikes. Traders are pricing in
[2:00] Speaker 2: more than a 50 percent chance of a hike at
[2:03] Speaker 2: the central bank's next meeting in late October. King Charles
[2:07] Speaker 2: is preparing to host the world's leading tech executives today.
[2:10] Speaker 2: at a royal event in Scotland. And AI, it's going
[2:13] Speaker 2: to be the big topic. Tom McKenzie is covering the
[2:16] Speaker 2: meeting in Glasgow.
[2:17] Speaker 6: This is quite telling, isn't it, that it falls to
[2:19] Speaker 6: King Charles III to try to cajole and browbeat these
[2:23] Speaker 6: AI executives into committing that they will build this technology
[2:28] Speaker 6: in a way, the king says, that benefits all people.
[2:31] Speaker 6: He was also pointing out he wants to see this
[2:33] Speaker 6: AI technology to ensure that it's not just ecologically sustainable,
[2:37] Speaker 6: but interestingly, I thought as well, economically. It seems that
[2:40] Speaker 6: this is a king, this is a monarch, this is
[2:41] Speaker 6: a palace that wants to use its leverage to bring
[2:44] Speaker 6: these executives together to see if there's some kind of
[2:46] Speaker 6: consensus that can be formed.
[2:48] Speaker 2: Bloomberg's Tom McKenzie in Glasgow says NVIDIA CEO Jensen Wang,
[2:52] Speaker 2: OpenAI's chief financial officer Sarah Fryer, and Google DeepMind co-founder
[2:57] Speaker 2: Demis Hassabis are attending the event.
[3:00] Speaker 1: And here in the U.S., Karen, OpenAI CEO Sam Altman
[3:03] Speaker 1: will be on the guest list when President Trump hosts
[3:05] Speaker 1: China's Xi Jinping for a White House state dinner next week.
[3:09] Speaker 1: OpenAI confirmed that to Bloomberg News, and a source says
[3:12] Speaker 1: former Apple CEO Tim Cook will be there as well,
[3:14] Speaker 1: along with NVIDIA's Jensen Wang. The gathering comes as lawmakers
[3:18] Speaker 1: debate whether and how to add guardrails to artificial intelligence.
[3:23] Speaker 1: Republican Congressman Mike Lawler of New York says there needs
[3:26] Speaker 1: to be a whole-of-government approach to regulate AI.
[3:28] Speaker 7: We want to have standards across the board that all
[3:31] Speaker 7: of these AI companies are abiding by to make sure
[3:35] Speaker 7: that you don't have a situation of hacking or cyber attacks.
[3:39] Speaker 7: and also so that we are prepared in dealing with China,
[3:42] Speaker 7: because China's not going to abide by the rules of
[3:44] Speaker 7: the road.
[3:45] Speaker 1: New York Republican Mike Lawler appeared on Bloomberg's Balance of Power.
[3:48] Speaker 1: President Trump has blasted existential fears about AI as a hoax.
[3:53] Speaker 1: He said the U.S. needs to maintain its technological edge
[3:55] Speaker 1: over China. At the same time, he says he has
[3:58] Speaker 1: a great relationship with President Xi.
[4:00] Speaker 2: Now to the latest from the Middle East, Nathan. Crude oil,
[4:03] Speaker 2: it's falling as Saudi Arabia races to get a key
[4:06] Speaker 2: pipeline back online after recent attacks. Sources say the East-West
[4:10] Speaker 2: pipeline could be back to about half capacity within days
[4:13] Speaker 2: and full operation is expected in six weeks. Bloomberg Middle
[4:17] Speaker 2: East News Director Will Kennedy has more.
[4:19] Speaker 8: People had been very worried that this crucial pipeline, which
[4:22] Speaker 8: has been a really important benefit during the Hormuz crisis
[4:26] Speaker 8: because it allows Saudi Arabia to shift oil exports from
[4:29] Speaker 8: the Persian Gulf to the Red Sea, would be out
[4:32] Speaker 8: of action for several weeks. If they can get it
[4:35] Speaker 8: online and half of it online, that would be several
[4:37] Speaker 8: million barrels a day. Much quicker, that will be some
[4:41] Speaker 8: salve to the market, although it doesn't solve the whole problem.
[4:43] Speaker 2: MS Bloomberg's Will Kennedy. Axios is reporting President Trump plans
[4:47] Speaker 2: to meet with Persian Gulf leaders next Tuesday on the
[4:50] Speaker 2: sidelines of the U.N. General Assembly in New York to
[4:52] Speaker 2: discuss the next steps in the Iran war. Checking oil
[4:56] Speaker 2: prices right now, Brent, it is down 1.3 percent at $ 104.
[4:58] Speaker 9: 44 a barrel.
[4:59] Speaker 2: West Texas Intermediate at $ 101. 43. And prices at the pump
[5:06] Speaker 2: are rising. AAA's latest average for regular unleaded, it's up
[5:12] Speaker 2: to $ 4. 44 a gallon. That's more than seven cents higher
[5:15] Speaker 2: than yesterday. And diesel, it's hit a new record, almost
[5:18] Speaker 2: $ 6. 40 a gallon.
[5:20] Speaker 1: Now to the latest on the trade front, Karen. President
[5:22] Speaker 1: Trump is floating new tariffs on imports from the European
[5:26] Speaker 1: Union if he deems that blocks relationship with Canada harmful
[5:30] Speaker 1: to the U.S., The news comes after European Commission President
[5:33] Speaker 1: Ursula von der Leyen proposed Canada becoming the EU's first
[5:36] Speaker 1: associate member during yesterday's State of the Union address. President
[5:40] Speaker 1: Trump says that news could have trade implications.
[5:43] Speaker 3: Canada's been a terrible trade partner, and no, I don't
[5:48] Speaker 3: see that. And if they do that, if I think
[5:50] Speaker 3: it's at all a hostile act, I will put very
[5:52] Speaker 3: serious tariffs or stop trading with Europe. on many things.
[5:57] Speaker 1: President Trump imposed 50% tariffs on $ 20 billion of Canadian
[6:02] Speaker 1: goods after trade talks collapsed last month.
[6:05] Speaker 2: Well, Nathan, President Trump made his latest comments as he
[6:07] Speaker 2: headed back out on the campaign trail in Gastonia, North Carolina,
[6:11] Speaker 2: to boost Republican Senate candidate Michael Watley.
[6:14] Speaker 3: If we lose, you're going to lose your border, you're
[6:16] Speaker 3: going to lose your tax cuts, you're going to lose
[6:19] Speaker 3: your wealth, and our country is going to go through hell.
[6:23] Speaker 3: and we're going to be a laughingstock all.
[6:25] Speaker 9: Over the world.
[6:26] Speaker 2: President Trump's trip is the kickoff of what he's called
[6:29] Speaker 2: a nationwide sprint to election day. The latest polling average
[6:33] Speaker 2: from Real Clear Politics shows Whatley trailing his Democratic opponent,
[6:37] Speaker 2: former Governor Roy Cooper, by nearly eight points in the
[6:40] Speaker 2: race to replace retiring Republican Senator Tom Tillis.
[6:44] Speaker 1: Like in Washington, Karen, the House is out for a
[6:46] Speaker 1: nearly two-month recess ahead of the midterms. But before they left,
[6:50] Speaker 1: lawmakers passed a major new sanctions package against.
[6:54] Speaker 2: On this vote, the yeas are 262, the nays are 159.
[6:57] Speaker 10: The motion is adopted.
[7:00] Speaker 1: The measure, sponsored by the late Senator Lindsey Graham, gives
[7:02] Speaker 1: the president new powers to impose 100 percent tariffs on
[7:06] Speaker 1: the top purchasers of Russian energy, including China, India and Turkey.
[7:10] Speaker 1: House Speaker Mike Johnson says it'll put more pressure on
[7:13] Speaker 1: Russian President Vladimir Putin.
[7:15] Speaker 4: It's the most significant international action taken so far in
[7:18] Speaker 4: to bring the unjust war to an end over there.
[7:21] Speaker 1: That's House Speaker Mike Johnson. But business groups and some
[7:23] Speaker 1: Democrats opposed the measure. House Foreign Affairs Ranking Democrat Gregory
[7:27] Speaker 1: Meek says the bill will make America's affordability crisis worse
[7:31] Speaker 1: by allowing more tariffs on U.S.
[7:33] Speaker 11: Allies.
[7:36] Speaker 2: Time now for a look at some of the other
[7:38] Speaker 2: stories making news in New York and around the world.
[7:40] Speaker 2: And for that, we're joined by Bloomberg's Michael Barr. Michael,
[7:43] Speaker 2: good morning.
[7:44] Speaker 11: Good morning, Karen. Democratic Congresswoman Joyce Beatty asked for an
[7:48] Speaker 11: emergency court hearing into the closure of the Kennedy Center,
[7:51] Speaker 11: suggesting the move may violate a court order against an
[7:55] Speaker 11: earlier attempt to shutter the venue. Beatty said the Kennedy
[7:58] Speaker 11: Center's board decision to physically shutter the facility may be
[8:03] Speaker 11: violating the clear and unambiguous order of the court. While
[8:07] Speaker 11: on his way to North Carolina last night, President Trump
[8:10] Speaker 11: suggested that he has owed his name on the Kennedy
[8:13] Speaker 11: Center building due to the money he claims he has
[8:15] Speaker 11: raised towards its repairs.
[8:18] Speaker 3: I think that the Trump administration should certainly have recognition because, frankly,
[8:23] Speaker 3: if we don't do that, it's going to close. It'll
[8:26] Speaker 3: end up being ripped down. It's in very, very bad shape,
[8:28] Speaker 3: very dangerous shape.
[8:30] Speaker 11: Congress has already earmarked $ 257 million for renovations for the
[8:35] Speaker 11: Kennedy Center. In Los Angeles, the NTSB says they are
[8:38] Speaker 11: working to analyze the wreckage after an MVC-4 helicopter crashed,
[8:43] Speaker 11: killing a news reporter, the pilot, and one on the ground.
[8:46] Speaker 11: The aircraft went down while covering a car and bus
[8:49] Speaker 11: crash that also left at least two others dead. The
[8:52] Speaker 11: NTSB's Fabian Salazar says they hope to gain some insight
[8:56] Speaker 11: into a possible cause of the crash in a video
[8:59] Speaker 11: captured by the reporter inside the cockpit as the chopper
[9:02] Speaker 11: went down.
[9:03] Speaker 9: In that recording, we are clearly hearing sounds that are
[9:07] Speaker 9: consistent with the engine changing its speed. And we're also
[9:11] Speaker 9: hearing tones that are being generated that are likely advisories
[9:16] Speaker 9: to the pilot.
[9:17] Speaker 11: The helicopter was operated by Angel City Air. U.S. prosecutors
[9:22] Speaker 11: allege a former Russian military officer offered $ 25, 000 to a U.S.
[9:27] Speaker 11: citizen to track and kill someone in Lithuania's capital who was, quote,
[9:31] Speaker 11: telling lies about Russia. The Justice Department has unsealed charges
[9:35] Speaker 11: against five people working for Russia's intelligence services to conduct
[9:39] Speaker 11: attacks and killings in Europe and the U.S. The allegations
[9:43] Speaker 11: detail Russia's expanding campaign of hybrid attacks against European nations
[9:48] Speaker 11: that supply weapons and money to Ukraine. Global news 24
[9:52] Speaker 11: hours a day and whenever you want it with Bloomberg
[9:54] Speaker 11: News Now. I'm Michael Barr and this is Bloomberg. Karen.
[9:57] Speaker 2: Thanks, Michael. Time now for our Bloomberg News. Sports Update.
[10:00] Speaker 2: And for that, we bring in John Stashower.
[10:03] Speaker 3: Thanks, Karen.
[10:03] Speaker 12: The Buffalo Bills play at the same stadium for 53 years. Tonight,
[10:06] Speaker 12: they'll play at their new one, Highmark Stadium, which cost
[10:11] Speaker 12: $ 2. 2 billion to build. It's the Bills and the Lions
[10:15] Speaker 12: to kick off Week 2. No Sam Darnold Sunday for
[10:18] Speaker 12: Seattle against Arizona. He's got the hip injury suffered yesterday.
[10:21] Speaker 12: In the season opener, the Seahawks will start Drew Locke
[10:24] Speaker 12: at quarterback. Big college game Saturday, LSU against Ole Miss.
[10:27] Speaker 12: Lane Kiffin against his old team. The LSU quarterback, Sam Leavitt,
[10:31] Speaker 12: listed as doubtful. That's your Bloomberg Sports Update.
[10:35] Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after this.
[10:43] Speaker 10: Coast to coast on Bloomberg Radio.
[10:45] Speaker 11: Nationwide on Sirius XM.
[10:47] Speaker 1: And around the world on Bloomberg.com and the Bloomberg Business App.
[10:52] Speaker 10: This is Bloomberg Daybreak.
[10:53] Speaker 11: Good morning. I'm Nathan Hager.
[10:55] Speaker 1: Well, it might not have been what the president wanted,
[10:56] Speaker 1: but the Fed delivered the quarter percent rate hike it's
[10:59] Speaker 1: been expecting with inflation still elevated and energy prices on
[11:03] Speaker 1: the rise. Fed Chair Kevin Warsh puts it simply, inflation
[11:06] Speaker 1: has been too high for too long.
[11:07] Speaker 4: Today's policy action will support a timelier return to the
[11:12] Speaker 4: committee's 2% goal. This committee will deliver price stability.
[11:17] Speaker 1: This is Fed Chair Kevin Warsh at the Post Decision
[11:19] Speaker 1: News Conference. You heard live on Bloomberg Radio. Joining us
[11:22] Speaker 1: now is Jennifer Lee, Senior Economist at BMO Capital Markets. So, Jen,
[11:27] Speaker 1: the hike was expected. Was it as hawkish as you expected?
[11:31] Speaker 11: Good morning.
[11:32] Speaker 10: Good morning, thanks for having me on. And I'm going
[11:34] Speaker 10: to say the answer is yes. And just the fact,
[11:37] Speaker 10: I had three big takeaways, or the three big things
[11:40] Speaker 10: that shocked me. Number one, that it was unanimous. And
[11:43] Speaker 10: I remember I called out right away, someone check Truth Social.
[11:47] Speaker 10: And the second little bit of surprise was that the
[11:49] Speaker 10: press release was so short for such a big announcement.
[11:54] Speaker 10: And of course, the 30-minute press conference, which is about
[11:58] Speaker 10: half of the usual time. Those are the three big
[12:01] Speaker 10: surprises that came to me. But overall, certainly a lot
[12:03] Speaker 10: more hawkishness. Again, the fact that it was a unanimous vote.
[12:09] Speaker 10: And some of the comments which the Fed chair gave,
[12:12] Speaker 10: a lot of it was like a repeat of what
[12:14] Speaker 10: he said back in Jackson Hole. But he hasn't swayed
[12:17] Speaker 10: from that at all. So it sounds like we do
[12:19] Speaker 10: have one more hike to come before the end.
[12:21] Speaker 2: Of the year.
[12:22] Speaker 1: Certainly what we're seeing in the dot plot, at least
[12:24] Speaker 1: as far as the averages go. In terms of that unanimity,
[12:27] Speaker 1: do you expect that to continue as we head further along?
[12:32] Speaker 10: I'm going to say yes. But of course, a lot
[12:36] Speaker 10: of this is going to depend on what happens with
[12:38] Speaker 10: the war in Iran, how long the straightforward moves will
[12:40] Speaker 10: be shut down for. Because I think that's been the
[12:43] Speaker 10: overriding factor for inflation, not just for the Federal Reserve,
[12:46] Speaker 10: for all the central banks around the world, except for
[12:49] Speaker 10: maybe Brazil who cut rates last night. But it's all
[12:52] Speaker 10: about energy prices and about inflation expectations and putting a
[12:56] Speaker 10: damper on inflation expectations. If that comes to an end,
[12:59] Speaker 10: then before the end of the year, then we may
[13:02] Speaker 10: see some stepping back from various voters. But right now,
[13:06] Speaker 10: as it stands, I wouldn't be surprised if we have
[13:08] Speaker 10: another unanimous vote in December.
[13:10] Speaker 1: You've been calling out energy prices a couple of times there.
[13:13] Speaker 1: Does this look to you like a data-dependent Fed still,
[13:18] Speaker 1: or was this a case of the market moving the
[13:20] Speaker 1: Fed in this direction, given the pricing that we saw
[13:23] Speaker 1: before the decision?
[13:25] Speaker 10: I don't think the Federal Reserve, as independent as they
[13:29] Speaker 10: are with everything, I don't think they can ignore completely
[13:31] Speaker 10: what the market is saying. And again, it was oil prices,
[13:36] Speaker 10: it was the CPI report, which even Chris Waller had
[13:41] Speaker 10: said that that August CPI report was going to be
[13:43] Speaker 10: the one that he was going to base his September
[13:46] Speaker 10: decision on. So there is data obviously involved in what
[13:50] Speaker 10: the Fed is saying, even though the Fed chair yesterday
[13:52] Speaker 10: said that he wasn't, I think he said, quote, I'm
[13:54] Speaker 10: not a data dependent kind of guy.
[13:58] Speaker 1: So in our last 30 seconds here, October, is it live?
[14:03] Speaker 10: You know, that's a tough one. You know, I think
[14:05] Speaker 10: every meeting is going to be live. But I think
[14:08] Speaker 10: the Federal Reserve probably will want to wait a little
[14:10] Speaker 10: bit more to get some more data to see what's
[14:12] Speaker 10: going to happen before they move again in December. Things
[14:15] Speaker 10: have to go wrong really quickly on the oil front.
[14:18] Speaker 10: And the data have to be uber, uber strong, I think,
[14:20] Speaker 10: to see another rate hike coming in October. And the
[14:24] Speaker 10: dot plots are also saying only one more hike before
[14:27] Speaker 10: the end of the year.
[14:29] Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories
[14:33] Speaker 2: making news from Wall Street to Washington and beyond.
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[15:16] Speaker 1: And I'm Nathan Hager. Join us again tomorrow morning for
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