Trump Demands 3% Rate Drop After Warsh Raised it and Threatens More Hikes
President Donald Trump demanded the Federal Reserve slash interest rates to 1% or lower on Wednesday. Fed Chair Kevin Warsh had just lifted rates to 3.75%-4% in the central bank’s first hike since 2023.
The Federal Open Market Committee’s decision was unanimous. Updated projections show 16 of 18 officials expect another increase before year-end, a shift from July’s outlook.
Fed Independence Fight Reignites
The committee also dropped language blaming part of inflation on supply shocks. It now argues the hike supports a quicker return to its 2% target.
Trump aired his frustration on Truth Social within hours of the announcement. He argued that the United States deserves near-zero borrowing costs because of its creditworthiness.
He also claimed that cutting trade with surplus countries could add at least $1.5 trillion a year to federal coffers. He has made similarly large investment claims before, and fact-checkers have called those figures overstated.
LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!
Trump wrote in the post.