US President Donald Trump renewed his call for the Federal Reserve to lower interest rates, arguing that the country should have the lowest borrowing costs in the world.
"Rates should be lower," Trump told reporters, claiming the US economy could grow at rates of 8%, 9%, 10% or even 12%.
"We should have the lowest interest rate in the world, like it used to be 30 years ago," he said, arguing that some countries benefit from lower borrowing costs despite relying heavily on the US economy.
Trump also suggested that some members of the Federal Reserve Board were "very political," adding that Fed Chair Kevin Warsh wanted to "do the right thing" but needed the consent of other policymakers.
Warsh took the oath of office as Fed chair on May 22, succeeding Jerome Powell. Trump nominated him on March 4, while the Senate confirmed him as a Fed governor on May 12 and as chair on May 13. His term as chair runs through May 21, 2030, while his term as a member of the Fed board expires on Jan. 31, 2040.
Trump repeatedly criticized Powell during his tenure for moving too slowly to reduce borrowing costs, accusing him of making politically motivated interest-rate decisions. He publicly called for Powell to resign and claimed that the Fed's restrictive policy was holding back economic growth.
Trump pointed to the latest inflation data as evidence that price pressures were easing, describing the report as "very good" and that costs were "going down rapidly."
US consumer prices fell 0.4% month-on-month in June, while annual inflation slowed to 3.5% from 4.2% in May. Core inflation, which excludes food and energy, eased to 2.6%.
The Fed has kept its benchmark interest rate within a target range of 3.5%-3.75% since the beginning of the year. Its next monetary policy meeting is scheduled for July 28–29.
