The administration of Donald Trump, President of the United States, on Wednesday once again called for a significant reduction in interest rates by the Federal Reserve. Trump wrote on his social media platform that interest rates in the United States should be reduced to 1% or lower, as the country is recognized as the best credit in the world. He also noted that the American economy is thriving with new investments.
Trump's Analysis of Trade Balance
Trump continued to address the trade balance issue and suggested that if the United States stops trading with countries that have a trade surplus, it would earn at least $1.5 trillion annually. Criticizing the term "deficit," which he believes means "loss," he stated that the United States supports nearly all countries in the world.
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Emphasizing the need to reduce interest rates for the United States, Trump called for swift action from the Federal Reserve, stating, "Interest rates should be lowered to the lowest in the world, as we have the strongest credit."
The Role of the Federal Reserve and Interest Rate Policies
Trump's remarks come as the Federal Open Market Committee (FOMC), chaired by Kevin Warsh, unanimously decided on Wednesday to raise the benchmark interest rate by 25 basis points. This action marks the first increase in over three years and is due to high inflation. In an interview after landing in North Carolina, Trump told reporters that he spoke with Federal Reserve Chairman Kevin Warsh and advised him to vote with the board.
Trump also criticized the Federal Reserve's policies, stating that board members are highly political and that interest rates are currently too high. He believes that the United States should have lower interest rates than other countries in the world.
These comments from Trump come as part of his ongoing criticisms of the Federal Reserve regarding interest rate policies. He has repeatedly called for reducing borrowing costs to 1% or lower and emphasized that this action is essential for strengthening the country's economy.
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