‘We’re the best credit’: Trump fumes after 1st Fed rate hike in over 3 yrs
The Federal Reserve has set a new target range by increasing its benchmark interest rate, marking its first hike since 2023. President Donald Trump has called for a substantial reduction in interest rates, advocating for lower borrowing costs given the country's robust credit status. However, officials have stated that ongoing inflation remains a significant factor driving this adjustment.
US President Donald Trump lamented the Federal Reserve's decision to raise interest rates for the first time in over three years, posting on Truth Social that he believes rates should be "1%, or less". Trump stated that the US is "the Best Credit in the World" and that lowering borrowing costs would benefit the nation, as it is experiencing a "boom with new investment".
He suggested that ending trade deficits with deficit-ridden countries could generate an additional $1.5 trillion annually, emphasizing that running deficits is akin to carrying a loss. Meanwhile, the Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%-4%, citing resilient domestic spending, strong productivity growth, and robust capital investment.
However, the Fed acknowledged that inflation remains elevated and requires further reduction to meet its 2% target.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 5 other outlets
- US Federal Reserve defies Trump with interest rate hike france24.com
- Fed defies Trump with first rate rise since 2023 ft.com
- Malaysian ringgit falls to 4.085 versus US dollar after first Fed rate hike since 2023 malaymail.com
- Fed rate hike fails to calm troubled markets as Dow falls 600 points. Expect more sharp swings in stocks and bonds. marketwatch.com
- (LEAD) Seoul stocks open higher despite first Fed rate hike in over 3 yrs en.yna.co.kr
