🇺🇸 Trump wants an FRS rate of 1% — but the Fed did the opposite
Donald Trump said that interest rates in the U.S. should be 1% or even lower. In his view, the U.S. has the most reliable credit in the world, and low rates would help support investment and economic growth.
But there’s an important detail: on September 16, the Fed raised the rate by 0.25 percentage points — to 3.75–4%. This was the first rate increase since 2023. The Fed explained its decision by saying that inflation remains elevated, and the central bank’s goal is to bring it back to 2%. (Federal Reserve System)
Trump also said the U.S. could earn at least $1.5 trillion per year if it stopped trading with countries it has a deficit with. He called the deficit effectively a “loss.” (Anadolu Agency)
For financial markets, the key contradiction here is:
📉 Trump: rates need to be cut sharply
🏦 Fed: inflation is still too high for such a step
📊 Current rate: 3.75–4%
🎯 Fed’s inflation target: 2%
If rates truly start moving toward 1%, it could significantly change the conditions for lending, investment, and risk assets. But for now, the Fed’s stance remains much stricter than Trump’s demands.
Donald Trump said that interest rates in the U.S. should be 1% or even lower. In his view, the U.S. has the most reliable credit in the world, and low rates would help support investment and economic growth.
But there’s an important detail: on September 16, the Fed raised the rate by 0.25 percentage points — to 3.75–4%. This was the first rate increase since 2023. The Fed explained its decision by saying that inflation remains elevated, and the central bank’s goal is to bring it back to 2%. (Federal Reserve System)
Trump also said the U.S. could earn at least $1.5 trillion per year if it stopped trading with countries it has a deficit with. He called the deficit effectively a “loss.” (Anadolu Agency)
For financial markets, the key contradiction here is:
📉 Trump: rates need to be cut sharply
🏦 Fed: inflation is still too high for such a step
📊 Current rate: 3.75–4%
🎯 Fed’s inflation target: 2%
If rates truly start moving toward 1%, it could significantly change the conditions for lending, investment, and risk assets. But for now, the Fed’s stance remains much stricter than Trump’s demands.
