Trump demands sub-1% rates following Fed hike
Shafaq News- Washington
US President Donald Trump urged the Federal Reserve on Thursday to cut interest rates, stepping up pressure on the central bank after it raised its benchmark rate by 25 basis points.
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR,” he wrote on Truth Social, adding that the economy was “booming” as new investment flowed into the country.
Trump argued that cutting trade with countries where the United States runs deficits would generate substantial revenue, claiming that the United States is “carrying” nearly every country and “that cannot go on any longer.”
Trump also attacked the Federal Reserve’s rate decision, calling the central bank “hostile” and accusing it of acting for political reasons to make his administration’s economic record look worse.
The Federal Open Market Committee voted unanimously to raise the federal funds rate by 25 basis points to a range of 3.75% to 4%, ending five consecutive meetings in which the rate had remained unchanged.
The decision sent the dollar to a seven-week high, while higher Treasury yields reflected expectations that the Fed could keep raising rates. The dollar index, which tracks the US currency against a basket of major currencies, also climbed to 100.33, its highest level since July 31.
Fed Chair Kevin Warsh attributed the move to inflation, saying it was “too high and has been for too long,” and called it a “sober” and “responsible decision.”
Despite opposing the increase, Trump praised Warsh, saying he still had confidence in the man he picked earlier this year to take over the Fed from Jerome Powell, a figure the president has frequently criticized for not delivering the sharp rate cuts Trump has repeatedly demanded.
