Trump says U.S. should have the world’s lowest interest rates, backs Kevin Warsh

Donald Trump said the United States should have interest rates lower than any other country, even as he voiced support for Federal Reserve Chairman Kevin Warsh.

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He will do what he has to do.

Speaking to reporters in the Oval Office on Friday, Trump said he had “a lot of respect” for Warsh and that “he will do what he has to do.” Trump then renewed his call for lower borrowing costs, saying the United States should have rates “much lower than any country in the world.”

Warsh signaled a more cautious approach at the Jackson Hole economic policy symposium on Aug. 28. He said policymakers needed confidence that underlying inflation was clearly moving toward its target at a sufficiently rapid pace. If that confidence was absent, he said, “we have work left to do.”

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I think we should have rates much lower than any country in the world.

Those remarks led markets to increase expectations that the Federal Open Market Committee could raise rates at its Sept. 15-16 meeting.

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We need to have confidence that underlying inflation is clearly and rapidly enough moving toward target. If not, we have work left to do.