Trump demands interest rates of 1% or less after Fed raises rates for first time since 2023
President Donald Trump fired back at the Federal Reserve within hours of its first rate hike in three years, posting on Truth Social that U.S. interest rates "should be 1%, or less", a demand that would require slashing the benchmark rate by nearly three full percentage points.The Federal Reserve on Wednesday unanimously voted to raise the federal funds rate by a quarter of a percentage point, lifting it to a range of 3.75% to 4.00%. The move reversed course after multiple rounds of rate cuts in late 2024 and 2025, when the central bank had worried about a slowing economy and a weakening labor market. Fed Chairman Kevin Warsh, who was sworn into the post in May, said the hike "comes at a time when the economy appears to be strengthening."
Trump did not see it that way. In a post on Truth Social, the president argued that America's creditworthiness and booming investment climate justified rates far below where the Fed just set them.
"Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World, BY FAR. Our Country is BOOMING with new Investment! 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 followed up by calling trade deficits "nothing more than a fancy word for LOSS" and demanded the Fed act immediately.
"We are 'carrying' almost every country in the World, and that cannot go on any longer. LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"The unanimous vote matters. Every member of the rate-setting committee backed the quarter-point increase. There was no dissent for Trump to point to, no internal split to exploit. The Fed spoke with one voice, and that voice said inflation, not the president's preference, would set the direction of monetary policy.
Whether Warsh can hold that line under sustained presidential pressure will be the question that defines his tenure. The Fed's independence is only as strong as the chairman willing to defend it, and the president just made clear he expects results, not explanations.
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There has to be somebody behind This all at the Federal reserve and the supreme Court I think it sounds like somebody is doing something like saying that they will hurt their family or children if they don't vote or do things a certain way nothing seems really logical there's something, funny business going on here today and it's probably the deep State and the globalist who keep pushing all of this because they're doing things in Europe toward our country too and it really is something very odd and perplexing for sure!
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