Trump Urges Fed to Cut Rates to Lowest in World Ahead of FOMC Meeting

U.S. President Donald Trump intensified calls for the Federal Reserve to adopt the lowest interest rates in the world ahead of the Federal Open Market Committee’s (FOMC) meeting scheduled for September 15–16. Speaking at the Trump International Golf Links in Doonbeg, Ireland, on September 13, Trump reiterated his view that the U.S. economy’s strength should underpin record-low borrowing costs, despite market expectations of a potential rate increase. His remarks followed a warning issued on September 4, where he threatened to halt trade with deficit-run countries if the Fed failed to lower rates further. Trump’s comments came after August’s core consumer price index (CPI) grew by 0.3% month-on-month, exceeding forecasts of 0.2%, and international oil futures recently surpassed $100 per barrel. The Chicago Mercantile Exchange (CME) currently assigns an 86.2% probability to a 0.25 percentage-point rate hike in September, though Trump’s rhetoric suggests a divergence between market pricing and his economic priorities. In a September 13 press conference, Trump stated, ‘The U.S. economy is so strong that regardless of their formula, we should have the lowest interest rates in the world,’ while also asserting that America’s creditworthiness is unmatched globally. He framed his stance as a means to reverse what he described as a ‘situation’ where other nations benefit from U.S. economic policies. White House National Economic Council Director Kevin Hassett acknowledged Trump’s influence on economic policy, stating that while the president respects Fed Chair Kevin Warsh’s independence, he holds a ‘very strong view’ that rates should decline further. Hassett noted that Trump’s September 4 warning—‘if they don’t lower rates, we will halt trade with countries where we run deficits’—reflects a persistent demand for aggressive monetary easing, despite market expectations otherwise. The FOMC’s decision will be closely watched, with traders and policymakers balancing inflation data, global trade dynamics, and political pressure on the central bank’s independence.