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U.S. President Donald Trump on Wednesday renewed his call for the Federal Reserve to cut interest rates to 1% or lower, arguing that the strength of U.S. credit should give the country the world’s lowest borrowing costs.
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World—BY FAR,” Trump wrote on Truth Social, adding that the U.S. “is BOOMING with new Investment!”
Trump also suggested cutting trade ties with countries that run surpluses against the U.S.
“If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year,” he wrote.
Trump described the word “deficit” as “nothing more than a fancy word for LOSS” and claimed the U.S. was “carrying” almost every country in the world.
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” he added.
Speaking to reporters after arriving in North Carolina later Wednesday, Trump said he had spoken with Federal Reserve Chair Kevin Warsh.
“You might as well vote with the board because it’s not going to matter,” Trump said he told Warsh.
“The board is hostile, they’re very political,” Trump said.
He argued that U.S. interest rates were too high and said the country should pay the lowest rates in the world because it has the “strongest credit.”
Trump nevertheless said he wants the Fed to remain “independent.”
Trump’s comments came after the Federal Open Market Committee, led by Warsh, unanimously raised its benchmark interest rate by 25 basis points Wednesday, marking the first increase in more than three years as the central bank responds to persistently high inflation.
The move lifted the federal funds target range to 3.75%-4.00%.
Trump has repeatedly clashed with the Federal Reserve over monetary policy and has continued to push for borrowing costs to fall to 1% or lower.
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