Trump urges the US Fed to quickly cut rates to 1% or lower — The Hill
US President Donald Trump, following the Federal Reserve's interest rate hike, urged the regulator to quickly cut it to 1% or lower. The Hill reports.
In a Truth Social post, Trump said that the United States has the best creditworthiness in the world and that the country is experiencing an influx of new investment. He also claimed that the US could receive at least $1.5 trillion annually if it stopped trading with all countries with which it has a trade deficit.
The president also said that the US supports nearly every country in the world and stressed the need to promptly lower interest rates.
Federal Reserve decision
Trump's reaction came about two hours after the Federal Reserve raised the rate by a quarter of a percentage point, to 4%. This was the first rate increase in more than three years.
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Fed Chair Kevin Warsh told reporters that the decision was intended to support a faster return of inflation to the 2% target. According to him, he could not describe overall financial conditions as restrictive, and committee members shared that assessment, so the regulator removed some stimulus.
Change in Fed leadership
Trump nominated Warsh to serve as Fed chair, replacing Jerome Powell, whose term in the position ended in May. Previously, the president repeatedly criticized Powell for refusing to cut rates.
Amid this criticism, the US Department of Justice opened an investigation into Powell over two central bank buildings in Washington, but later dropped it. Powell remains a member of the Fed Board.
