U.S. President Donald Trump, saying U.S. interest rates are excessively high, repeatedly urged Federal Reserve (Fed) Chair Kevin Warsh to cut rates.
According to Reuters and others on the 31st (local time), Trump met reporters in the Oval Office that day and said he has great respect for Chair Warsh, adding on rates, "He will do what he needs to do."
He added, "Our (U.S.) interest rates are too high," stressing, "U.S. interest rates should be the lowest in the world."
Trump also said, "Success and growth do not cause inflation. I don't like inflation either, but inflation occurs for other reasons," adding, "When the economy is doing well, there is no need to raise rates. In many cases, rates should be lowered instead."
Earlier, on the 28th, at the Jackson Hole Economic Policy Symposium (Jackson Hole meeting), Warsh said, "We must be confident that underlying inflation is clearly and sufficiently rapidly moving toward the target," adding, "If not, we still have work to do." He suggested the Fed could raise rates if price increases do not slow sufficiently.
After Warsh's remarks, financial markets began to price a higher chance that the Federal Open Market Committee (FOMC) will raise rates at its Sept. 15–16 meeting. According to CME FedWatch, the probability of a September rate hike rose to about 60% after Warsh's speech.