Trump Demands Rate Cut as US Fed Raises Interest Rates to 3.75%-4%
US President Donald Trump has renewed his demand for sharply lower borrowing costs after the Federal Reserve raised its benchmark interest rate for the first time since July 2023. The Fed increased borrowing costs by 25 basis points to a range of 3.75% to 4%, citing persistent inflationary pressures.
Trump took to social media, calling for a dramatic reduction in interest rates, stating that US interest rates should be '1%, or less'. He argued that the American economy was attracting fresh investment and had strong credit credentials.
The Fed's decision has put it at odds with Trump's repeated calls for cheaper borrowing. The central bank emphasized that inflation remained too high despite resilient economic activity and a stable labor market.