Trump Pressures Fed, Saying U.S. Interest Rates Are Too High and Kevin Warsh Will Do What Needs to Be Done

U.S. President Donald Trump has indirectly pressured the Federal Reserve to cut interest rates, stating that U.S. rates are too high and that Federal Reserve Chair Kevin Warsh will do what needs to be done.

When asked at the White House on the 31st local time whether he opposed rate hikes hinted at by Fed Chair Warsh and if he had discussed the matter with him, President Trump replied, "No. I respect him a lot, and he will do what he has to do."

President Trump went on to emphasize multiple times that "our interest rates are too high" and that "we should have the lowest interest rates in the world," indirectly calling for a rate cut.

President Trump added, "Success and growth do not cause inflation. I don't like inflation either, but inflation happens for other reasons," and "When we are doing well, there is no need to raise interest rates. In many cases, we should lower them."

Fed Chair Warsh suggested at the Jackson Hole Economic Symposium in Wyoming on the 28th of last month that the Fed could proceed with rate hikes if inflation does not slow down.

Implementing a rate cut would inevitably lead to a clash with President Trump, who has consistently pushed for lower interest rates.

Warsh's predecessor, Jerome Powell, also had to endure pressure from President Trump throughout his term, which even involved personal attacks.

The Federal Open Market Committee (FOMC), where the Fed decides its benchmark interest rate, is scheduled to hold its next meeting on September 15–16.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.