DOONBEG, Ireland: President Donald Trump said on Sunday that no country should have lower interest rates than the United States, speaking just days before the Federal Reserve is due to hold its next policy meeting.
Addressing reporters at the Irish Open golf tournament, Trump said he did not know whether the Federal Reserve would raise interest rates this week. However, he argued that the United States should have the lowest rates in the world regardless of the central bank’s assessment of inflation and broader economic conditions.
The Fed meeting comes less than a week after Labor Department data showed the Consumer Price Index recorded the biggest increase in underlying inflation in four months, reinforcing expectations that policymakers could raise rates.
The decision will also come just weeks before the U.S. midterm elections, which will determine whether Republicans maintain their narrow majorities in Congress. Any increase in borrowing costs could intensify voter concerns over affordability, with inflation still a major political issue.
Trump has repeatedly criticised the Federal Reserve’s approach to interest-rate policy and has argued that higher U.S. rates benefit other countries at America’s expense.
“I know more about formulas than anybody, and with the best credit in the world, we make other countries rich,” Trump said.
Trump has taken a more supportive stance toward the Fed’s leadership since Kevin Warsh, his choice for chair, assumed the role earlier this year, though he has continued to publicly call for lower interest rates.
National Economic Council Director Kevin Hassett said Trump would defend Warsh’s independence regardless of the Fed’s decision, while acknowledging that the president would be unhappy if policymakers chose to raise rates.