Trump Pressures Federal Reserve Ahead of Crucial Interest Rate Decision
US President Donald Trump pressured the Federal Reserve ahead of its rate decision, arguing the US must have the lowest interest rates globally despite rising inflation.
Trump Increases Pressure on the Federal Reserve Ahead of Rate Decision
US President Дональд Трамп intensified his pressure on the Federal Reserve on Sunday, ahead of the upcoming interest rate decision scheduled for Wednesday, stating that no country in the world should enjoy a lower interest rate than the США. According to a Reuters report, speaking to reporters during the Irish Open golf tournament, Trump said he did not know whether Fed policymakers would decide to raise rates at the upcoming meeting, but argued that the US "should pay the lowest interest rate in the world" regardless of inflation and economic data.
His remarks come just days after US inflation data showed the sharpest increase in four months, reinforcing expectations that the Fed might raise rates this week. The interest rate decision also carries distinct political significance, coming weeks before the midterm congressional elections, which will determine whether Republicans retain their slim majority in both chambers.
"I know more about formulas than anyone else, and with the best credit in the world we are making other countries rich," Trump said.
Economic Pressures and Political Stakes
According to Reuters and Ipsos polls, a rate hike could exacerbate voters' concerns over the cost of living. Approval ratings for Trump have declined amid persistent inflation, and he has repeatedly claimed that the Fed's monetary policy benefits other countries at the expense of the US.
While Trump frequently attacked former Fed Chair Jerome Powell in the past, his tone toward the central bank leadership has softened since his own appointee, Kevin Warsh, took office earlier this year. However, his demands regarding interest rates have become more explicit. Kevin Hassett, Director of the National Economic Council, stated that Trump "will protect above all the independence of Kevin Warsh," regardless of the Fed's decision. Nonetheless, he added that if there is a rate hike, the president "will certainly not be particularly happy."
