Trump Calls for 1% Rates After Fed Raises Benchmark to 3.75%-4%
The Federal Reserve said inflation remains elevated, while its latest projections show rates staying above 4% through 2027.
President Donald Trump called for U.S. interest rates to fall to 1% or lower on Sept. 16, shortly after the Federal Reserve raised its benchmark rate to a 3.75%-4% target range.
“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR,” Trump wrote.
The Federal Open Market Committee approved the quarter-point increase unanimously, with all 12 members voting in favor. The Fed said inflation remains elevated and reaffirmed its 2% inflation goal.
The central bank’s latest projections put the median federal funds rate at 4.1% at the end of both 2026 and 2027. The median projection falls to 3.9% in 2028 and 3.6% in 2029.
The projections also show median personal consumption expenditures inflation at 3.7% in 2026, easing to 2.3% in 2027 and 2.1% in 2028.
The federal funds rate is the Fed’s benchmark short-term interest rate. The projections indicate that officials expect rates and inflation to remain above Trump’s preferred level through at least 2027.
