‘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.
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