President Trump Calls for Sub-1% Rates Following Federal Reserve Hike

• President Trump demanded US interest rates be 1% or less.
• This followed the Federal Reserve’s first rate hike since 2023, setting rates at 3.75%-4.00%.
• Trump criticized the Fed board as “hostile” but maintained confidence in Chair Kevin Warsh.

President Donald Trump on Wednesday publicly criticized the Federal Reserve after it announced its first interest rate hike since 2023, setting the target range at 3.75%-4.00%. Hours after the decision, Trump demanded the central bank reduce rates to 1% or less, citing the US’s global economic burden. He characterized the Fed’s board as “hostile” and “political” for unanimously defying his calls for lower borrowing costs. Despite his strong disapproval of the board’s action, Trump confirmed his confidence in Fed Chair Kevin Warsh, stating he had advised Warsh to vote with the majority due to the board’s expected stance.