President Trump urges the Federal Reserve to lower interest rates, citing falling costs and a recent favorable inflation report.
US President Donald Trump called for the Federal Reserve to cut interest rates, pointing to a recent inflation report and rapidly declining costs. He suggested prices would drop further once the Gulf War concludes, marking his first public push for lower rates. Trump praised Fed Chair Kevin Warsh but noted the broader board’s influence on policy decisions.
The Fed’s mandate includes maintaining price stability and full employment, typically targeting 2% inflation. Recent inflation trends and geopolitical developments may influence the Fed’s upcoming policy meetings, where rate adjustments are decided. Lower rates could weaken the USD by reducing its appeal to international investors.
Trump’s remarks follow comments from Treasury Secretary Bessent, who highlighted the administration’s tax cuts as relief for low- and middle-income households. The Fed’s next policy meeting will assess economic conditions, including inflation and employment data.