Trump Urges Rapid U.S. Rate Cut Below 1%, Criticizes Fed Rate Hike

U.S. President Donald Trump criticized the Federal Reserve's decision to raise interest rates on the 16th (local time), stating, "U.S. interest rates should be 1% or even lower."

Trump made the remarks on social media platform Truth Social, saying, "We are by far the country with the best credit rating in the world."

"Our country is booming with new investments," Trump claimed, adding, "If we stop trading with every country with which we run a trade deficit, which is most countries, we would make at least $1.5 trillion a year."

He continued, "'Deficit' is just a polite way of saying 'loss,'" and stated, "We are 'carrying' almost every country in the world, and this situation can no longer continue."

This is interpreted as an emphasis on the need for rate cuts, based on the logic that since the United States is propping up other nations' economies while absorbing massive trade deficits, the U.S. should not have to shoulder high interest rates as well.

Trump urged, "Lower U.S. interest rates. Hurry up!"

Earlier that day, the Federal Reserve raised its benchmark interest rate by 0.25 percentage points to 3.75%–4.00%.

This marks the first monetary tightening measure in 3 years and 2 months since July 2023.

The move drew particular attention as it was the Fed's first rate hike since the inauguration of Fed Chair Kevin Warsh, who was appointed by Trump.

Ahead of the November midterm elections, Trump has consistently demanded rate cuts from the Fed and has publicly expressed expectations that Chair Warsh, whom he nominated, would lower rates.

However, judging that inflation remains at a high level, the Fed decided on the rate hike with a unanimous vote from all 12 FOMC members (Fed governors and regional Federal Reserve Bank presidents) who held voting rights that day.
※ Please note: This article was translated by AI and may contain errors.