US President Donald Trump has urged the Federal Reserve to lower interest rates, saying the US economy is stronger and warning that high borrowing costs put the country at a disadvantage.
“Great jobs number just announced, breaking all estimates (except mine!) by double and triple,” Trump said in a post on his Truth Social platform.
Trump called on the Federal Reserve to cut rates, arguing that stronger economic conditions justify lower borrowing costs.
“Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!” he said.
“A strong country means a lower interest rate — it’s a better credit,” Trump added.
He also argued that the US should have the world’s lowest interest rate, “like ‘the old days,’” and linked monetary policy to the country’s trade relationships.
Trump warned that Washington could take further trade measures against countries with which the US runs a deficit.
“Be patriots for a change”
“Lower the rate or I’ll stop trading with countries with which we have a deficit,” he said.
He criticised the Supreme Court’s recent tariff decision and said stopping trade with deficit countries would be “better than tariffs!”
“The Fed Board, with its great new leader, must get smart — be patriots for a change,” he said.
“High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!” Trump added.
Trump’s statement comes days after US Federal Reserve (Fed) Chairman Kevin Warsh said inflation remains too high, despite a resilient economy.
Speaking at the Jackson Hole Economic Symposium last week, Warsh evaluated the current economic landscape and monetary policy.
He noted that while labour markets remained stable and output was solid, the inflation rate was still concerning.
The chairman emphasised that the Fed's preferred measure of inflation stood at 3.7% over the past 12 months.
He added that the six-month change was even higher at 4.1%, well above the central bank's firm 2% target.
