Trump Demands Lowest US Interest Rates Amid Fed Policy Meeting

President Trump has called for the US to have the lowest interest rates in the world, advocating for rates as low as 1% or below. Speaking from an Irish golf course on September 13, Trump stated that the US 'should be paying the lowest interest rate in the world.'

The current federal funds rate sits at a target range of 3.50% to 3.75%. Trump's argument is that high interest rates put the US at a competitive disadvantage compared to other nations and increase the cost of servicing the national debt, which now exceeds $39 trillion.

Market participants expect the Federal Reserve's policy meeting on September 15-16 to result in a rate hike rather than a cut. However, Trump took to social media with a post threatening to stop trading with countries that have a deficit if rates are not lowered.