Trump Demands Lower Interest Rates Ahead of Fed Decision
President Donald Trump has made it clear that he wants lower interest rates in the US. Speaking at the Irish Open golf tournament, he said that the country should have the lowest interest rate in the world despite robust economic growth and sticky inflation above the Fed's 2% target.
Trump's comments come as the Federal Reserve is set to meet this week, with a widely expected hike in the federal funds rate by 25 basis points to a range of 3.75-4.00%. The President has been critical of former Fed Chair Jay Powell but has shown more support for new Chair Kevin Warsh.
However, Trump's demands may not be met, as Warsh is expected to hike rates and be hawkish in his post-meeting press conference. This could convince financial market participants that a rate-hiking cycle has begun.