US President to the Fed: Interest rates must be cut to 1% or lower - Sarmad

US President Donald Trump called on the Federal Reserve to cut interest rates in the United States to 1% or lower, in his first comment following the central bank’s decision to raise rates.

The Federal Reserve announced an interest rate hike, defying Trump’s desire to lower borrowing costs, while the decision largely aligned with market expectations.

The Federal Open Market Committee voted unanimously to raise the benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%, after holding it steady for five consecutive meetings.

In a post on the Truth Social platform, Trump stated that US interest rates “should be 1 percent or less,” arguing that the country enjoys, in his words, “by far the best credit in the world.”

He added that the United States is “prospering” amid a surge in new investments, noting that if the country halted trade with every nation with which it runs a trade deficit—most countries, according to him—it would generate “at least $1.5 trillion annually.”

Trump characterized the term “deficit” as merely a “fancy word for loss,” adding that the United States “bears the burden” of most of the world’s countries, and that this situation “cannot continue any longer.”

Trump concluded his post by calling for a rapid reduction in US interest rates.

In a related development, Trump described the Federal Reserve as “hostile,” asserting that the decision to raise interest rates is driven purely by political motives aimed at targeting his administration.

Despite defending Federal Reserve Chair Kevin Warsh, whom he personally appointed, Trump insisted that he is facing a board seeking to portray his economic performance negatively.

Speaking to reporters after the decision was announced, Trump said: “They are raising interest rates to make Trump’s performance look as bad as possible… That is why they are raising them for purely political reasons, and this hike is aimed at Trump.”