President Donald Trump called for U.S. interest rates to be reduced to 1% or lower following the Federal Reserve’s decision Wednesday to raise its benchmark rate. Trump made the demand in a post on Truth Social immediately after the Fed’s announcement.
Trump wrote that interest rates “should be 1%, or less,” arguing for a rapid reduction in borrowing costs. His comments came after the Federal Open Market Committee unanimously voted to raise the federal funds target range by a quarter percentage point.
The Fed’s decision brought the target range to 3.75% to 4%. The central bank said inflation remains elevated and that the latest policy action is intended to support a return to its 2% inflation goal.
Trump has repeatedly called for lower interest rates, arguing that reduced borrowing costs would support economic activity. His latest demand puts his preferred rate level well below the range established by the Fed on Wednesday.
The disagreement highlights the different policy priorities involved in the debate over interest rates. The White House has called for lower rates, while the Federal Reserve has continued to emphasize inflation and its statutory monetary-policy objectives in setting rates.
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