Trump Pressures the Fed Again: "Lower Rates Would Help the U.S. Grow More"

[Financial News New York = Reporter Lee Byung-chul]  U.S. President Donald Trump again pressed the Federal Reserve System (Fed) to cut interest rates, saying the U.S. benchmark rate should be the lowest in the world, just two days before the Federal Open Market Committee (FOMC) meeting. While praising his appointee Kevin Warsh in public, he also criticized other Fed governors as "very political."
Speaking to reporters aboard Air Force One on the 27th local time, Trump said, "Kevin is great. But he has a board, and I want to say the board members are very political." He added, "He wants to do the right thing. I know what he wants to do."
He then targeted the Fed governors, arguing that they were in a position where they "probably have to get approval from people with not-so-good intentions" and insisting that "rates need to come down."
Trump emphasized that lower rates could significantly boost the growth potential of the U.S. economy.
He said, "This country's Gross Domestic Product (GDP) growth rate could reach 8%, 9%, 10%, or even 12% on an annualized basis." He added, "That is how it should be." He also reiterated, "Like 30 years ago, the United States should have the lowest interest rates in the world."
The remarks came two days before the FOMC meeting, where the Fed will decide its benchmark rate. Markets widely expect the committee to leave rates unchanged at the current 3.50% to 3.75% range, though some still see room for an additional 0.25 percentage point hike.
Inflation concerns have also resurfaced inside the Fed. Lorie K. Logan, president of the Federal Reserve Bank of Dallas and a voting member of this year's FOMC, recently said the benchmark rate may need to be "somewhat higher," signaling the possibility of further tightening.



[email protected] Reporter Lee Byung-chul Reporter