Trump Urges Fed to Cut Rates Amid Divided Expectations

President Donald Trump has renewed his calls for the Federal Reserve to lower interest rates ahead of its upcoming policy decision. Speaking to reporters aboard Air Force One, Trump said the US should have the lowest borrowing costs in the world, citing other countries with lower interest rates.

Trump backed Fed Chair Kevin Warsh and suggested that the broader Federal Reserve Board is preventing rate cuts due to 'political' motivations. He questioned the motives of other Fed officials, stating that they may have 'bad intentions.'

The Fed's benchmark policy rate currently stands at 3.5%-3.75%, unchanged since cumulative rate cuts in the second half of 2025. Investors are divided over whether policymakers will leave rates unchanged or opt for a surprise 25-basis-point increase.