Trump urges Fed to cut rates to 1% after latest hike

President Donald Trump posted on his social-media platform on Wednesday demanding that the Federal Reserve reduce the benchmark interest rate to 1% or lower, shortly after the central bank announced a 0.25 percentage-point increase. The Federal Open Market Committee voted unanimously to raise the target range to 3.75%-4%, noting that inflation remains elevated.

"We are 'carrying' almost every country in the World, and that cannot go on any longer," Trump wrote.

"LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"

Trump argued that the United States enjoys the best credit rating globally and therefore should benefit from lower borrowing costs. He also claimed that the country is experiencing a surge in investment and suggested that cutting trade with deficit nations could generate $1.5 trillion annually, a figure fact-checkers have labeled inaccurate.

The Fed’s chairman, Kevin Warsh, who was appointed by Trump, oversaw the rate hike, which the committee said was necessary to address persistent inflation pressures.