Trump Calls on Fed to Cut Interest Rates Amid Inflation Concerns

US President Donald Trump has urged the Federal Reserve to cut interest rates in its next policy meeting, saying that they are 'so afraid of inflation'. In a statement on Thursday, Trump claimed that when good economic numbers are announced, interest rates should come down. Instead, he argues, the Fed is driving them up because it's 'afraid of inflation', and this approach is misguided.

Trump pointed to recent data showing positive US inflation numbers, which he believes shows that success in growth does not cause inflation. He also accused Fed officials of having political motives behind their interest rate decisions, suggesting that they are influenced by the board members appointed by previous presidents, including Obama and Biden.

The Federal Reserve's July meeting minutes showed that many policymakers expected higher rates to be necessary unless inflation shows more progress. Since then, US inflation data has been generally positive, though the annual rate remains well above the Fed's 2% target. Trump argued that interest rates should be allowed to fall with the success of the country, not rise because of it.