Trump again calls for Federal Reserve to cut interest rates

President Donald Trump urged the Federal Reserve to cut interest rates during a press briefing in Ireland, where he is attending the Irish Open. He said the United States should pay the lowest interest rate in the world, regardless of formulas, and that the Fed should raise its benchmark lending rate by 25 basis points to between 3.75% and 4%. The market expects the Fed to act this week, with more than 86% of participants forecasting the increase.

Consumer price data released Friday showed that prices rose more than expected last month, a development that is likely to push the Fed to raise the fed funds lending rate for the first time in three years. According to CME Group’s Fed Watch tool, the Fed is expected to raise the rate 25 basis points to between 3.75% and 4%.

Earlier this month, Trump suggested cutting off trade with some countries that have a trade deficit with the United States if the Fed did not cut rates. He said, “We could turn that off in two minutes,” and added that voters roundly disapprove of how he has handled the economy and war with Iran. Concerns about the rising cost of living ahead of the November midterm elections could end Republican control of Congress.

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