Trump Demands Lowest Global Interest Rate Ahead of Fed Meeting

U.S. President Donald Trump has reiterated his call for lower interest rates ahead of the Federal Reserve's policy meeting on Wednesday. Speaking at the Irish Open golf tournament, Trump stated that no country should have lower interest rates than the U.S., and that the country 'should be paying the lowest interest rate in the world'. The Labor Department's Consumer Price Index posted its largest increase in four months last Friday, reinforcing expectations of a rate hike by the Fed.

The central bank's governors are meeting just weeks before midterm elections, which could add to voter concerns about affordability. Trump has argued that the Fed's interest rate levels have helped other countries at the expense of the U.S., and has threatened to stop trading with countries that run a deficit if rates aren't lowered.

The Federal Reserve's target range for its federal funds rate is currently at 3.5% to 3.75%. Many Fed policymakers worry that prolonged high inflation could make it more expensive to bring prices back down to target. National Economic Council Director Kevin Hassett stated that Trump will defend the independence of Fed Chair Kevin Warsh, but also expressed Trump's own preferences for lower interest rates.