Trump Slams Possible Interest Rate Hike, Says US Should Pay Lowest Rates

US President Donald Trump has expressed opposition to another interest rate increase by the Federal Reserve, citing strong economic growth as a reason why the US should have lower borrowing costs. Speaking at the White House, Trump said he believed that the country's current interest rates are too high and that it should enjoy lower borrowing costs compared to other nations.

Trump argued that the strength of the US economy and its position in the global financial system meant that it should have lower interest rates than other countries. He linked this argument to US trade power, saying that several countries benefit from access to the American market while paying lower interest rates.

In response to a question about Federal Reserve Chairman Kevin Warsh's signal that the central bank could consider raising rates, Trump said he respected Warsh but disagreed with his assessment. Trump noted that the Fed's response to strong economic data has changed over the past quarter-century, and that positive economic results now support higher interest rates rather than lower ones.

The President disputed the idea that stronger economic growth necessarily produces inflation, saying that success in growth does not cause inflation but is often caused by other reasons. He argued that a stronger economy improves the creditworthiness of the US and should therefore support lower borrowing costs.