Trump Demands Lowest Global Interest Rate Ahead of Fed Meeting
US President Donald Trump made a surprise statement on Sunday, ahead of the Federal Reserve's upcoming policy meeting. He said that no country should have lower interest rates than the US, despite rising inflation.
In an interview at the Irish Open golf tournament, Trump stated that he wants the US to have the lowest interest rate globally. This comes as a surprise, given the Fed's data indicating elevated price pressures and expectations of a rate hike.
The Labour Department's Consumer Price Index posted its largest increase in four months, reinforcing expectations that the Fed will raise the target range for its federal funds rate from 3.5% to 3.75%. Trump has been critical of the Fed's interest rate levels, arguing that they have helped other countries at the expense of the US.
In recent remarks, Trump threatened to stop trading with countries that have a deficit with the US if the Fed does not lower rates. National Economic Council Director Kevin Hassett emphasized Trump's support for Fed leadership, but also noted that the president is not happy about the idea of rate hikes.