Trump Demands Lowest Interest Rates in World Amid Growing Economic Optimism

US President Donald Trump has once again called on the Federal Reserve to lower interest rates, arguing that the US should have the world's lowest borrowing costs. 'Rates should be lower,' he told reporters, claiming the US economy could grow at rates of 8%, 9%, 10% or even 12%. The president pointed out that some countries are benefiting from lower borrowing costs despite relying heavily on the US economy.

Trump also expressed his opinion about the Federal Reserve Board members being 'very political' and suggested that Fed Chair Kevin Warsh, who succeeded Jerome Powell in May, wanted to do the right thing but needed the consent of other policymakers. He criticized Powell during his tenure for moving too slowly to reduce borrowing costs, accusing him of making politically motivated interest-rate decisions.

The US consumer prices fell 0.4% month-on-month in June, while annual inflation slowed to 3.5% from 4.2% in May. Trump described the latest inflation data as 'very good' and said that costs were 'going down rapidly.' The Fed has kept its benchmark interest rate within a target range of 3.5%-3.75% since the beginning of the year, with its next monetary policy meeting scheduled for July 28-29.