Trump Backs Fed Chair Warsh, Calls for Lowest Global Interest Rates

President Donald Trump has expressed his support for Federal Reserve Chair Kevin Warsh, stating that he won't criticize him over interest rate decisions. According to Trump, interest rates are 'not totally up' to the Fed Chairman and are influenced by a 'very political' board.

Trump argued that the current system unfairly rewards other countries despite the economic strength of the United States. He claimed that strong economic data now fuels expectations of higher interest rates rather than lower borrowing costs, unlike decades ago when it led to cheaper borrowing costs.

To illustrate his point, Trump singled out Switzerland, noting that it borrows at roughly half a percentage point while the U.S. pays considerably more. He also stated that he could erase the U.S.'s roughly $39 billion trade deficit with Switzerland 'with one stroke of the pen' by restricting Swiss imports.

The President's push for lower interest rates comes amid growing calls for rate hikes to keep inflation in check. Bank of America CEO Brian Moynihan has reiterated the bank's forecast for three interest-rate hikes this year, while Federal Reserve Bank of Minneapolis President Neel Kashkari called for gradual rate hikes as soon as September.