President Trump urges Federal Reserve to cut interest rates to 1% or less after first hike since 2023

President Donald Trump has renewed his call for the Federal Reserve to cut interest rates, saying the U.S. should have the lowest rates in the world. His comments came after the Fed, led by Chairman Kevin Warsh, raised its benchmark rate by a quarter point to 3.75%-4%—the first increase since 2023. The hike was driven by inflation running at 3.4% annually, above the Fed's 2% target. Trump took to Truth Social to demand lower rates "fast," arguing that high rates put the U.S. at a disadvantage. The Fed's decision was unanimous, and Warsh said the economy was strengthening.