Trump urges rate cuts as Fed weighs inflation risks and a cooling job market

President Donald Trump again pressed the Federal Reserve to lower interest rates, calling them artificially high as the Treasury Department announced that the national debt had surpassed $40 trillion. Most traders expect the Fed to keep its benchmark rate at 3.5% to 3.75% at its September meeting, though some anticipate a hike.

Minutes from the Fed’s July meeting showed officials divided over inflation. Most expected price pressures to ease as tariff and energy effects fade, while many warned inflation could stay elevated and said higher rates might be needed if it does not decline.

The Fed has held rates steady so far this year. Higher rates generally raise borrowing costs for credit cards, personal loans and car loans, while benefiting savers; mortgage rates typically track the 10-year Treasury yield instead. U.S. employers cut 23,000 jobs in July, while annual inflation remained at 3.4%, above the Fed’s 2% target.

Read the full story at USA Today.