Trump Renews Call for Rates Below 1% as Fed Raises Benchmark
The Federal Reserve lifted its federal funds target range to 3.75%–4% while warning that inflation may remain above its 2% goal.
President Donald Trump renewed his call for U.S. interest rates of 1% or lower after the Federal Reserve moved in the opposite direction, highlighting a widening policy split with implications for liquidity and crypto markets.
Trump argued that the United States’ strong credit standing and rising investment support sharply lower borrowing costs. He said cheaper financing would encourage business investment, reduce the government’s debt costs and strengthen U.S. competitiveness.
The Fed raised its federal funds target range to 3.75%–4%, citing elevated inflation risks. The increase put monetary policy at odds with Trump’s demand for significantly cheaper money.
Boston Fed President Collins supported the rate increase and warned that inflation could remain well above the central bank’s 2% objective. With the labor market still showing resilience, she said policy should remain restrictive long enough for inflation to continue slowing.
The opposing positions mark a direct clash between the White House’s preference for lower financing costs and the Fed’s focus on containing persistent price pressures.
