Fed Knocks Down Trump as Interest Rates Hike Sent Shockwaves Through Markets

The Federal Reserve has increased American short-term interest rates by a quarter percentage point to 3.75-4% as expected.

President Donald Trump responded with criticism, saying 'Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World - BY FAR.'

This highlights one of Trump's ongoing issues: his misunderstanding of interest rates and their purpose in dealing with inflation.

The Federal Reserve is focusing on inflation in the US, not creditworthiness. Interest rates have surged due to America's huge deficit ($US40 trillion) and high inflation.