Trump criticizes interest rate hike: It must be cut quickly to 1% or lower

U.S. President Donald Trump criticized the Federal Reserve’s decision to raise interest rates on Wednesday, calling for a rapid reduction to 1% or lower.

Trump stated that U.S. interest rates should be at 1% or below, emphasizing the need for a swift cut.

His remarks came after the Federal Reserve raised its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4.00%, amid persistent inflationary pressures.

The Federal Open Market Committee approved the decision unanimously, with 12 votes in favor and none against, affirming that inflation remains elevated and that the move will support a faster return to the central bank’s 2% target.

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Federal Reserve Chair Kevin Warsh said inflation remains high and has stayed elevated for an extended period, noting that summer data do not show tangible improvement in underlying inflation trends.

New projections indicate that 16 of the 18 monetary policymakers expect at least one more quarter-point rate hike by year-end, while two anticipate keeping rates at their current level.

Trump has repeatedly called for lower interest rates, even as the Federal Reserve maintains its priority of bringing inflation back to its 2% target.