Trump Slams Fed Rate Hike, Demands Lower Interest Rates Amid Inflation Fears
US President Donald Trump has called for lower interest rates after the Federal Reserve raised them for the first time in three years to combat 'too high' inflation. The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent, citing the need for a 'timelier return' to its two-percent target.
The move comes as Trump has been pushing for lower interest rates, which he believes would boost economic activity. However, the Fed's decision contradicts his demands, with central bank chief Kevin Warsh stressing that inflation is 'too high' and has been 'for too long.'
Trump responded to the rate hike on his Truth Social network, calling for lower interest rates for the US. He also floated cutting trade ties with countries running surpluses against the US, claiming that the US would gain at least $1.5 trillion per year if it stopped trading with deficit countries.