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Trump calls for slashing interest rates to '1% or less' after the Fed's first hike in 3 years

Business Insider ·
Trump calls for slashing interest rates to '1% or less' after the Fed's first hike in 3 years

President Donald Trump said he wants lower interest rates.

Aaron Schwartz / AFP via Getty Images The Fed hiked interest rates by a quarter point on September 16.

President Donald Trump wants to cut, writing on Truth Social that rates should be 1% or less.

Chair Kevin Warsh might face more political pressure from the White House.

The Fed hiked interest rates for the first time in three years — and President Donald Trump isn't thrilled.

"Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR," he wrote on Truth Social.

"Our Country is BOOMING with new Investment!" While Trump didn't mention him by name in the post, Chair Kevin Warsh faced a massive test of Fed independence Wednesday.

The Federal Open Market Committee voted unanimously to raise rates by a quarter point to foster stable prices.

Inflation is stubbornly outpacing wage growth in the US and remains above the Fed's 2% goal, largely due to supply shocks from the Iran War and flip-flopping White House tariff policies.

In quarterly economic projections, the committee also expects GDP growth to remain relatively strong, unemployment to hold steady, and inflation to stay above 2% through the rest of the year.

A slew of members see another rate hike on the horizon.

Trump — who nominated Warsh to the chairmanship — has been vocal about wanting lower interest rates, a monetary policy route that would likely result in higher inflation and a climbing cost of living for Americans.

Congressional leaders, economists, and members of the FOMC have worried about how Trump's policy pressure will shape a long nonpartisan central bank.

With a hike, Warsh could see more flak from the White House.

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