U.S. President Donald Trump repeatedly pressed for a rate cut ahead of the Federal Reserve's meeting to decide its benchmark interest rate.
On the 27th, local time, aboard Air Force One, Trump told reporters, "Rates should be cut. This country's gross domestic product (GDP) growth rate could be 8%, 9%, 10%, even 12%. That's the appropriate level."
He added, "There are countries with lower rates than ours, but they wouldn't even exist if it weren't for us," and said, "The United States should have the lowest rates in the world. If I put the money those countries are making into our portfolio, that can happen. As 30 years ago, we should have the lowest rates in the world."
The remarks came a day before the Federal Open Market Committee (FOMC) July meeting, where the Fed sets the benchmark rate. This FOMC will meet for two days starting on the 28th and decide the benchmark rate on the 29th.
The current U.S. benchmark rate is 3.50–3.75% annually and has been kept on hold four times in a row this year (in Jan., Mar., Apr. and Jun.). At last month's first FOMC meeting under Chair Kevin Warsh, whom Trump nominated directly, the benchmark rate was also left unchanged.
Trump called Chair Warsh "fantastic" but added, "He has a board, and the governors are very political." He continued, "He wants to do the right thing," and said, "I know what he wants to do, but he may have to win over some people who might have bad intentions."
This is seen as highlighting in advance that even if the Fed holds the benchmark rate again this time, responsibility would lie not with Chair Warsh but with a board that is strongly political.