Trump In Bad Mood On Wednesday

President Donald Trump is pushing back against the Federal Reserve after the central bank raised interest rates Wednesday, arguing that borrowing costs should be dramatically lower.

Trump said the U.S. should have interest rates at 1% or below, pointing to what he described as the country’s strong credit standing and continued investment. He also tied his argument to the nation’s trade deficit, saying the United States could generate significant revenue by stopping trade with countries where it runs deficits.

The president’s comments came shortly after the Federal Reserve approved a quarter-point increase in its benchmark rate, moving the target range to 3.75% to 4%. It was the Fed’s first rate increase since 2023.

Federal Reserve Chairman Kevin Warsh said the move was intended to help bring inflation back toward the central bank’s 2% target. The Fed said inflation remains elevated while economic activity continues to expand at a solid pace.

Warsh took over as Fed chairman earlier this year after being appointed by Trump. Despite Trump’s repeated calls for lower rates, the Federal Reserve has continued to make its monetary policy decisions based on its assessment of inflation, employment and broader economic conditions.

The latest decision highlights the continuing divide between Trump’s preference for substantially lower borrowing costs and the Fed’s current focus on bringing inflation under control.

For Americans, interest-rate changes can affect borrowing costs on credit cards, adjustable-rate loans and other forms of debt, while savers can potentially see higher returns on products such as savings accounts and certificates of deposit.