President Trump has a very different number in mind for interest rates than the Federal Reserve does. After the Fed raised its key rate on Wednesday for the first time since 2023, Trump posted on Truth Social that US rates "should be 1%, or less," arguing the country is "the Best Credit in the World — BY FAR," the Wall Street Journal reports. The central bank raised its benchmark rate to a range of 3.75%-4% on Wednesday and signaled that there could be another rate hike before the end of the year. "The plain fact is that inflation is too high and has been for too long," Fed Chair Kevin Warsh said in a post-announcement press conference.
In his Truth Social post, Trump floated an aggressive trade idea he's mentioned before: halting commerce with nations that run a trade surplus with the US. Trump claimed that if Washington stopped trading with every country where the US runs a deficit, it would gain "at least, 1.5 Trillion Dollars a year." The US has a trade deficit with numerous countries, including China, Vietnam, Mexico, and Canada.
- "The word 'Deficit' is nothing more than a fancy word for LOSS. We are 'carrying' almost every country in the World, and that cannot go on any longer," Trump wrote. "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"
Trump regularly attacked Jerome Powell, Warsh's predecessor, for failing to lower interest rates or failing to lower them fast enough. Trump so far hasn't directly criticized Warsh, whom he chose to replace Powell earlier this year, CNBC reports. White House spokesman Kush Desai told Fox News on Wednesday that Trump "absolutely" supports the central bank's independence, but "the president of the United States has a First Amendment right" to speak out "when things go awry."
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