The Straits Times·3 min read·medium

Trump urges Fed to cut US interest rates to 1% or less

T
The Straits Times
Trump urges Fed to cut US interest rates to 1% or less
AI Summary

President Donald Trump has publicly pressured Federal Reserve chief Kevin Warsh to lower interest rates to 1% or less, linking the move to his concerns over US trade deficits. Despite his criticism of the Fed's current policy, Trump stated he maintains confidence in Warsh.

Why it matters

The President's public intervention in monetary policy signals potential friction between the executive branch and the independent central bank, which could influence market expectations.

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President Donald Trump has appeared to connect persistent US trade deficits with the borrowing costs set by the Federal Reserve, even though the two are largely unrelated.

Listen WASHINGTON – US President Donald Trump on Sept 16 levelled his most pointed – though still indirect – criticism yet at his hand-picked Federal Reserve chief, fuming on social media over the central bank’s move to raise interest rates in a bid to calm persistent inflation.

“Interest rates in the United States should be 1 per cent, or less, because we are the best credit in the world – BY FAR,” he wrote on Truth Social, his social media platform.

“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” he concluded.

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