Donald Trump says US interest rates "should be 1%, or less" after Fed rate increase

The Federal Reserve raised its benchmark rate by a quarter of a percentage point, to a 3.75–4 percent range, its first increase in three years, and President Donald Trump responded on Truth Social by saying US rates should be at or below 1 percent, citing the nation's credit standing and new investment. Trump also said ending trade with deficit countries would bring in at least $1.5 trillion annually and that the US bears the load for most other countries, calling for swift cuts. Fed Chair Kevin Warsh, Trump's pick to replace Jerome Powell after Powell's term expired in May, said the move would help return inflation to the Fed's 2 percent target. The Justice Department investigated Powell over central bank building renovations and later dropped the case.