Trump advocates that the U.S. should have the lowest interest rates in the world
Quick Look
- President Trump said during the Irish Open that no country should have lower interest rates than the United States, emphasizing that the United States should pay the lowest interest rates in the world, although he did not know whether the Federal Reserve would raise interest rates at this week's meeting.
- The remarks came at a time when the core CPI hit its largest increase in four months and the market expected an interest rate hike, and involved his support for Federal Reserve Chairman Washer and past criticism of former Chairman Jerome Powell.
AI-generated summary
Why It Matters
The Federal Reserve will hold a policy meeting less than a week after core CPI hit its largest rise in four months, and the market is widely expected to raise interest rates. Trump had previously criticized former Chairman Ball, but was more supportive of his nominee, Wash.
Days before the upcoming Federal Reserve policy meeting, U.S. President Trump said today that no country should have lower interest rates than the United States.
Reuters reported that Trump told reporters during the Irish Open that he did not know whether Federal Reserve officials would raise interest rates at their meeting this week. But he stressed that the United States "should pay the lowest interest rates in the world, no matter what the Federal Reserve data shows about inflation and economic conditions."
Please read on...
The Federal Reserve will meet in less than a week after a key indicator of core inflation is released. The U.S. Department of Labor released the August Consumer Price Index (CPI) on the 11th, with core CPI recording the largest increase in four months, further strengthening market expectations that the U.S. central bank will raise interest rates.
The meeting of Fed governors comes just weeks before midterm elections that will determine whether Republicans can maintain slim majorities in both houses of Congress. As inflation persists, Trump's support declines. He argued that the Fed's interest rate levels benefit other countries but harm the United States.
"I understand the formula better than anyone, we have the best credit in the world and we make other countries rich," he said today.
Since his nominee Kevin Warsh took over as Fed chairman earlier this year, the president, who has repeatedly criticized former Chairman Jay Powell, has become more supportive of the Fed's leadership. However, Trump’s demands have become clearer recently.
Two weeks ago, he posted on social media: "Cut interest rates or I will stop trading with countries with which we have trade deficits."
White House National Economic Council Chairman Kevin Hassett told "Fox News Sunday" today that Trump "will defend Washer's independence regardless of the Fed's decision on interest rates."
However, Hassett also emphasized Trump's position, saying, "If interest rates are raised... I dare say he will not be happy about it." (Compiled by: He Hongru) 1150914
What to Watch
AI outlook — possibilities, not facts
The Fed will raise interest rates at this week's meeting
Likely · Within days
Trump will continue to publicly pressure the Fed to keep interest rates low
Very likely · Within weeks
Open Questions
- Will the Federal Reserve decide to raise interest rates at this week's meeting?
- Will Trump’s interest rate doctrine affect the Fed’s independent decision-making?
- If interest rates in other countries are lower than those in the United States, will Trump impose the trade sanctions he threatens?
