Trump Demands World's Lowest Interest Rate Ahead of Fed Meeting
President Donald Trump has weighed in on interest rates ahead of the Federal Reserve's policy meeting this week, stating that the US should have the world's lowest interest rate. Speaking at the Irish Open golf tournament in Doonbeg, Ireland, Trump said he did not know whether Fed policymakers will raise interest rates at their meeting but believes the US 'should be paying the lowest interest rate in the world'.
The Labor Department's Consumer Price Index posted its largest increase in four months on Friday, reinforcing expectations that the US central bank will raise the target range for its federal funds rate. The current rate is 3.5% to 3.75%, and many at the Fed worry that prolonged high inflation could make it harder to bring it back down.
Trump's approval ratings have fallen as inflation has persisted, and he has argued that the Fed's interest rate levels have helped other countries at the expense of the US. He made his demands clear on social media two weeks ago, stating that if rates are not lowered, 'I'll stop trading with countries with which we have a deficit.'