Donald Trump reiterates preference for lower interest rates days before Fed holds steady

President Donald Trump once again called for significantly lower interest rates on July 27, speaking aboard Air Force One just two days before the Federal Reserve’s latest policy meeting. His pitch: the US should have the lowest interest rates in the world. The Fed’s response, delivered 48 hours later: no, thanks. The central bank opted to hold rates steady at its July 29 meeting, citing elevated inflation as the primary reason. It was the second meeting under Chair Kevin Warsh, and the second time the new chair declined to deliver the rate cuts the president has been loudly requesting. The presidential pressure campaign Trump has spent much of his second term pushing publicly for rate cuts, framing them as essential to economic growth and housing affordability. In his telling, lower borrowing costs would be “Rocket Fuel” for the economy. Trump praised Warsh as “fantastic” while simultaneously suggesting that the Fed’s decision-making process is influenced by politics. Trump also made clear his view that interest rates are “not solely decided by the central bank chief.” Why the Fed isn’t moving The Federal Reserve’s mandate is straightforward on paper: maximum employment and stable...