Trump Pushes for Lowest Interest Rate in World Ahead of Fed Meeting

President Donald Trump has made it clear that he wants the US to have the world's lowest interest rate. Speaking at the Irish Open golf tournament, Trump said 'no country should have lower interest rates than the US' just days before the Federal Reserve's next policy meeting.

The Labor Department's Consumer Price Index (CPI) posted its largest increase in four months on Friday, reinforcing expectations that the Fed will raise the target range for its federal funds rate. The current rate is 3.5-3.75 per cent.

Price pressures remain elevated due to Trump's import tax increases and surging energy prices tied to the Iran war. Many at the Fed worry that if inflation remains high, it will be more costly to bring it back down to target.

Trump has been critical of the Fed's interest rate levels, saying they have helped other countries at the expense of the US. He has threatened to stop trading with countries that have a deficit with the US unless the Fed lowers rates.