President Donald Trump said interest rates should be one percent or less after the Federal Reserve unanimously hiked rates by a quarter of a percent on Wednesday.
Trump took to Truth Social to call for rates to be lowered “fast.”
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR. Our Country is BOOMING with new Investment! 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.
“The word ‘Deficit’ is nothing more than a fancy word for LOSS. We are ‘carrying’ almost every country in the World, and that cannot go on any longer. LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” he added.
The federal funds rate now sits in the range of 3.75 percent and four percent after the decision, which is the first rate hike since 2023. Fed chairman Kevin Warsh, who was sworn into the post in May, said the hike “comes at a time when the economy appears to be strengthening.”
As Breitbart News Economic and Finance Editor John Carney reported:
The move marks a reversal of the Fed’s previous rounds of cuts in late 2024 and 2025, moves that were spurred by concerns among Fed officials that the economy was slowing and the labor market was weakening. The increase suggests Fed officials are now confident in the resilience of the economy and view stubborn inflation as a greater risk.
“Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the Fed said in a statement released at the conclusion of the two-day meeting of the Federal Open Market Committee. “Inflation remains elevated. Today’s policy action will support a timelier return to the Committee’s 2 percent goal.”
Trump has long called for the Fed to lower interest rates, and famously dubbed former chairman Jerome Powell “too late” because he did not cut rates quickly enough in the president’s opnion.
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