Trump Says U.S. Rates Should Be Lowered to 1% or Below as Soon as Possible, Criticizing Fed Rate Hike

[Financial News] U.S. President Donald Trump criticized the Federal Reserve System (Fed) on the 16th local time for raising the federal funds rate, saying, "U.S. interest rates should be 1% or lower."
Trump made the remarks on Truth Social, saying, "We are by far the most creditworthy country in the world."
He claimed, "Our country is booming with new investment," adding, "If we stopped trading with every country that runs a trade deficit with us—in other words, most countries—we would earn at least $1.5 trillion a year."
He continued, "The word 'deficit' is merely an elegant way of saying 'loss,'" and stated, "We are 'carrying' almost every country in the world, and this situation cannot continue any longer."
The remarks were interpreted as emphasizing the need for rate cuts on the grounds that, while the United States is supporting other economies by accepting massive trade deficits, it should not also have to bear high interest rates. Trump then urged, "Lower U.S. interest rates. Do it quickly!"
The Fed raised the federal funds rate by 0.25 percentage points that day to an annual range of 3.75%–4.00%. It was the first monetary tightening measure in three years and two months, since July 2023.
The move drew particular attention because it was the Fed’s first rate hike since Kevin Warsh took office as chair, after being appointed by Trump.
Trump has repeatedly called on the Fed to cut interest rates ahead of the November midterm elections and has publicly expressed his expectation that Kevin Warsh, whom he nominated, would lower rates.
However, the Fed determined that inflation remained elevated and decided to raise rates unanimously, with all 12 voting members of the Federal Open Market Committee (FOMC)—Fed governors and presidents of the regional Federal Reserve Banks—in favor.


[email protected] Lee Seok-woo, International Affairs Specialist Reporter