Trump urges sharp cut in US interest rates after Fed hike

US President Donald Trump called for a sharp reduction in interest rates following the Federal Reserve's decision to raise its benchmark rate by 25 basis points to a target range of 3.75 to 4 per cent. This marked the first rate hike since 2023, defying Trump's expectations.

Trump expressed his frustration with the Federal Reserve's move, stating, "Lower the interest rates for the United States of America, and fast!" He emphasised that the country is "the best credit" and criticised the current inflation levels, saying, "The plain fact is that inflation is too high and has been for too long." He also suggested that stopping trade with countries where the US has a deficit could generate at least 1.5 trillion dollars annually. Trump warned that the rate hike could "stymie the economic progress" of the nation.