Trump: "US interest rates should be 1% or lower...Fed raises rates for political reasons" (Comprehensive)

Trump: "US interest rates should be 1% or lower...Fed raises rates for political reasons" (Comprehensive)

Still trusts Chairman Wash... "I trust Wash, but the board is difficult."

"The US supports almost every country in the world...US interest rates should be the lowest in the world."

On the 16th (local time), U.S. President Donald Trump expressed criticism regarding the Federal Reserve's (Fed) decision to raise the benchmark interest rate, stating, "America's interest rates should be 1% or lower."

President Trump posted this message on his social media platform, Truth Social, stating, "We are by far the country with the best credit in the world."

President Trump asserted, "America is booming with new investment," adding, "If we stopped trading with every country with which we have a trade deficit, which is most countries, we would earn at least $1.5 trillion annually."

He continued, "The term '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."

This is interpreted as Trump emphasizing the need for interest rate cuts, arguing that since the U.S. is shouldering huge trade deficits and supporting the economies of other countries, it should not have to bear high interest rates itself.

President Trump then urged, "Lower America's interest rates. Hurry!"

After posting on social media, President Trump visited North Carolina. After disembarking from Air Force One, he met with reporters and reiterated, "Interest rates are too high," and that the U.S. "should have the lowest interest rates in the world."

Regarding the Fed's board, he criticized it as "very hostile and very political," accusing the Fed of raising interest rates solely for political reasons, targeting him.

However, President Trump defended Chairman Kevin Wash, whom he personally appointed, saying, "I trust Kevin, but he has a very difficult board," and "I told Kevin, 'It's no use anyway, so you might as well vote with the board (on the rate hike)."

He added, "No matter how well Chairman Wash does his job, he has a hostile board," showing a supportive stance towards Chairman Wash personally.

The Fed raised the benchmark interest rate by 0.25 percentage points (p) to 3.75-4.00% today. This is the first monetary tightening measure in 3 years and 2 months since July 2023.

It was particularly noteworthy as it was the first interest rate hike by the Fed since Chairman Wash, appointed by President Trump, took office.

Ahead of the November midterm elections, President Trump has consistently called on the Fed to lower interest rates and has openly expressed his expectation that Chairman Wash, whom he nominated, would lower rates.

However, the Fed, judging that the inflation rate remains high, decided to raise interest rates unanimously by the 12 FOMC members (Fed governors and regional Federal Reserve Bank presidents) who had voting rights today.