Trump Slams Fed Rate Hike, Calls for Rates to be at or Below 1%
President Donald Trump reacted strongly to the Federal Reserve's first interest rate hike in over three years, saying borrowing costs are already too high. Speaking on the tarmac in Gastonia, North Carolina, he criticized the move, calling for rates to be reduced 'FAST!' and claiming they should be at or below 1%.
Trump revealed he spoke with Federal Reserve Chair Kevin Warsh before the vote, saying he told him it was pointless to oppose the board's decision because they are 'very hostile'. However, when asked if his conversation influenced Warsh's decision, Trump said no.
Warsh emphasized the Fed's independence and responsibility to bring inflation under control. He pointed to renewed fighting between the US and Iran as one factor adding to inflation pressure, with fuel prices already climbing more than 7% in the past month.
The Fed's preferred inflation measure was up 3.7% from a year earlier in July, while excluding volatile food and energy prices, inflation was 3.3%, both above the Fed's 2% goal.