Trump renews demand for US interest rates to be slashed to 1%, lower

US President Donald Trump renewed his demand Wednesday for the Federal Reserve to drastically cut interest rates, arguing the country's creditworthiness justifies historically low borrowing costs.

"Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World -- BY FAR," Trump wrote on his Truth Social platform, adding the country "is BOOMING with new Investment!"

He floated cutting trade ties with countries running surpluses against the US. "If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year," he wrote.

Trump argued that "the word 'Deficit' is nothing more than a fancy word for LOSS," claiming the US is "'carrying' almost every country in the World."

"LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!" he added.

Trump's post comes after Federal Reserve Chair Kevin Warsh raised interest rates by 25 basis points on Wednesday, the central bank's first hike in more than three years, citing persistently high inflation. The US president has repeatedly clashed with the Fed over its rate policy, calling for borrowing costs as low as 1% or less.