Trump urges Fed to cut interest rates ahead of July FOMC meeting

Former U.S. President Donald Trump has publicly pressured the Federal Reserve to cut interest rates, stating that the nation "must have the lowest interest rates in the world." Speaking from the presidential plane Air Force One, Trump argued that such a move would enable the U.S. Gross Domestic Product (GDP) to grow significantly, potentially reaching 8%, 9%, 10%, or even 12%.

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The interest rates must be lowered.

Trump's remarks come just before the Federal Open Market Committee (FOMC) meeting on July 28-29, where the Fed is set to decide on its benchmark interest rate. While some market analysts anticipate the possibility of the first rate hike this year, Trump is advocating for a reduction, asserting that lower rates are essential for economic prosperity, reminiscent of past economic conditions.

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The GDP of this country can grow 8%, 9%, 10%, 12%. That is the appropriate level. We must have the lowest interest rates in the world, as we did 30 years ago.

Addressing Fed Chair Jerome Powell, whom Trump appointed, the former president described him as a "fantastic person." However, Trump also expressed skepticism about the Federal Reserve's board, characterizing its members as "very political." This suggests Trump might be preemptively attributing any decision contrary to his wishes to the board's political leanings rather than Powell's judgment.

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He is a fantastic person. But he has a board, and I think the board members are very political.