Trump says US should have world’s lowest interest rates ahead of Fed meeting: ‘I know more about formulas’
Trump said the US should have the world’s lowest interest rate ahead of the Fed’s September 15-16 meeting. Despite rising inflation and oil prices, he urged cuts, while officials, including Kevin Hassett, said Trump would defend Fed nominee Kevin Warsh’s independence.
US President Donald Trump said on Sunday that the United States should have the lowest interest rate in the world, days before the Federal Reserve's upcoming policy meeting, as per a report by Reuters.
Trump made these comments while speaking to reports at the Irish Open golf tournament. The US president said that although he is unaware of whether the Federal Reserve's policymakers will be raising interests in their upcoming meeting this week, he believes the United States "should be paying the lowest interest rate in the world" no matter what the Fed's data says about economy and inflation.
The Fed meeting, which is scheduled for 15-16 September, comes in the wake of the US' Labour Department releasing its Consumer Price Index, which posted its largest increase in four months. This has reinforced expectations that the Fed Reserve might raise interest rates.
In the meantime, US crude prices have risen by 20% in the last couple of weeks as shipping through Middle East routes continue to be affected due to the US-Iran war. This points towards a possibility of more inflation in September.
Another factor that is bothering Trump is that the Fed Reserve's governors are meeting just weeks before the midterm elections, since a hike in rate could make voters concerned about affordability, as per a Reuters/Ipsos polls. The vote will determine if the Republican Party is able to hold on to its slim majority in both Houses of the US Congress.
Trump, on Sunday claimed that he knows more about formulas than anyone else, and that the US is making others countries richer by having the best credit in the world.
“I know more about formulas than anybody, and with the best credit in the world, we make other countries rich," Reuters quoted Trump on Sunday.
Trump, who was critical of former Federal Reserve chair Jerome Powell, has not been as antagonistic when it comes to Powell's replacement, Kevin Warsh, but has recently threatened stopping trade will all countries with which the US have a trade deficit if interest rates are not lowered.
"LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," Trump posted on Truth Social two weeks ago.
However, the National Economic Council's Director Kevin Hassett told Fox News Sunday that Trump "will defend the independence of Kevin Warsh above all" no matter what the Federal Reserve does with interest rates.
With Reuters inputs
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