‘1% or less’: Trump demands rate cut after US Fed raises interest rates for first time since 2023

US President Donald Trump has called for a dramatic reduction in interest rates, following the Federal Reserve's decision to increase borrowing costs for the first time in over three years. In a social media post, Trump advocated for interest rates to be reduced to "1%, or less," citing strong credit credentials and the American economy's ability to attract investment.

The Federal Reserve raised its benchmark federal funds rate by 25 basis points to a range of 3.75% to 4%, marking the first increase since July 2023. The Fed's move aimed to combat persistent inflationary pressures, with officials emphasizing that inflation remained too high despite resilient economic activity and a stable labor market.

While Trump advocates for lower rates to stimulate the economy, the Fed maintains that controlling inflation is essential for long-term stability. The central bank's decision has put it at odds with Trump's repeated calls for cheaper borrowing and highlights the challenges policymakers face in balancing economic growth with inflation control.

Brief written by urgent.news from Live Mint's own syndicated text. Machine-written — may contain errors; check the original before relying on it.