US President Donald Trump on Monday, 28 July called on the Federal Reserve to lower interest rates, asserting that the United States should carry the world's lowest borrowing costs given its economic growth trajectory. Trump made the remarks aboard Air Force One while en route to Michigan, just days before the Federal Open Market Committee (FOMC) is scheduled to convene.

What Trump Said

'Rates should be lowered. This country could be at eight percent, nine percent, 10 percent, 12 percent GDP. That's what it should be,' Trump told reporters travelling with him.

The president argued that the US pays higher interest rates than nations that depend on American economic and security support — a situation he described as inequitable. 'We should have the lowest interest rate in the world,' he said. 'We have other countries that are paying less interest rates, and if it wasn't for us, they wouldn't even exist.'

Trump on Fed Leadership and Board Politics

When asked whether he was worried the Fed might raise rates to counter inflation, Trump pointed to what he called internal political dynamics within the central bank's board. He appeared to reference Fed Chair Kevin Hassett — though the sitting Fed Chair is Jerome Powell — saying, 'Kevin's fantastic, but he's got a board and the board members are very political, I would say.'

'He wants to do the right thing. I know what he wants to do, but you need the consent of some people that have perhaps bad intentions,' Trump added, without naming individuals.

Inflation, Biden, and the Iran War

Trump pointed to a recent inflation report to argue that prices were falling rapidly, and again attributed the preceding price surge to his predecessor. 'I inherited the worst inflation in history from Biden, but costs are going down rapidly,' he said.

The president also linked the inflation outlook to an ongoing conflict involving Iran, suggesting that prices could fall further once hostilities ended. 'As soon as the war is over, you're going to see a big drop,' he said.

The Switzerland Example

Trump cited Switzerland as a country benefiting from lower borrowing costs despite what he described as a $30 billion trade deficit with the United States. 'I could wipe out that deficit overnight,' he said, framing lower US rates as both an economic and geopolitical lever.

Context and Convention

Trump has repeatedly pressed for lower interest rates throughout his political career, arguing they would stimulate investment and accelerate growth. Notably, sitting US presidents have traditionally refrained from directly directing the Federal Reserve's monetary policy decisions, though public commentary on economic conditions is not unprecedented. This is the latest in a series of public statements by Trump pressuring the Fed ahead of a scheduled FOMC meeting — a pattern that has drawn scrutiny from economists and central bank independence advocates alike.