Trump Pressures Fed to Cut Rates Amid Strong GDP Growth
U.S. President Donald Trump has urged the Federal Reserve to cut interest rates rather than raise them, despite strong GDP growth and inflation above target.
In a recent Oval Office address, Trump claimed that U.S. GDP could grow as high as 20%, although this figure has almost no precedent in modern economic history.
The highest quarterly GDP growth rate since 1947 was 34.9% in the third quarter of 2020, largely due to a low-base effect after COVID-19 lockdowns were lifted.
Trump's comments come as the Federal Reserve is set to meet on September 15-16, with markets broadly expecting a rate hike and Fed Chair Kevin Warsh saying the central bank 'must be convinced that underlying inflation is clearly and sufficiently rapidly moving back toward target.'