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Trump demands 1% or lower interest rate after first Fed hike since 2023
cnbc.com • • business
Key Points:
- President Donald Trump demanded the Federal Reserve cut interest rates to 1% or lower, criticizing the recent rate hike as unsustainable for the U.S. economy.
- The Fed, led by Chairman Kevin Warsh, raised benchmark interest rates by a quarter percentage point to a target range of 3.75%-4%, citing elevated inflation.
- Trump claimed the U.S. is the best credit in the world and argued that lower rates would support booming investment, though his economic figures have been disputed by fact-checkers.
- He also suggested that stopping trade with countries where the U.S. has deficits could save the country at least $1.5 trillion annually.
- Recently, Trump threatened to cut off trade with nations holding trade surpluses with the U.S. if the Fed does not lower interest rates.
