Trump urges US interest rates to be lowest globally ahead of Fed meeting

US President Donald Trump on Sunday emphasized the need for American interest rates to be the lowest in the world, ahead of the Federal Reserve’s upcoming monetary policy meeting.

Speaking to reporters on the sidelines of the Irish Open golf tournament, as reported by Reuters, Trump said he did not know whether the Fed would raise rates on Wednesday, but stressed that US interest rates should remain the lowest globally, regardless of inflation or economic data.

The Fed meeting comes less than a week after the consumer price index posted its largest increase in four months, fueling expectations that the central bank may raise rates. The index is a key measure of core inflation in the US.

Fed officials are meeting just weeks before the midterm congressional elections, which will determine the fate of the Republican majority in both the House and Senate.

Recent opinion polls have shown that higher interest rates could heighten voter concerns about living costs, as Trump’s popularity continues to decline amid persistent inflation.

Trump noted that current interest rates have benefited other countries at the expense of the US, asserting that the US holds the world’s best credit rating.

Despite previous criticism of former Fed Chair Jerome Powell, Trump has shown greater support for current Chair Kevin Warsh.

In a social media post two weeks ago, Trump called for a rate cut and threatened to halt trade with countries running trade deficits with the US.

For his part, National Economic Council Director Kevin Hassett said Trump would defend Warsh’s independence, but noted the president would not be pleased if rates are raised.