Trump Demands Fed Slash Interest Rates Amid Rate Hike

President Donald Trump has called for lower interest rates after the Federal Reserve raised benchmark borrowing costs by a quarter percentage point to a target range of 3.75%, 4%. In a Truth Social post, Trump demanded that the Fed slash borrowing costs to '1% or less', citing strong economic investment and national creditworthiness as justification.

The move marks the central bank's first rate increase since 2023, with policymakers voting unanimously to raise interest rates. Federal Reserve officials pointed to elevated inflation driven by high energy costs and global geopolitical tensions as the main catalyst for the rate hike.

Trump has previously suggested cutting off trade with nations running a surplus with the U.S. unless borrowing costs are lowered, though economists remain skeptical on how such measures would lower interest rates for consumers.