President Donald Trump publicly called on the Federal Reserve to lower interest rates, stating the US should have the lowest rates in the world as it did 30 years ago [1]. He said, "Rates should be lowered. This country could be at 8%, 9%, 10%, 12% [annualized growth of] GDP. That's what it should be." [1]

Trump praised newly installed Fed Chair Kevin Warsh, calling him "fantastic" and saying Warsh wants to do the right thing. However, Trump criticized other Federal Reserve Board members as "very political" and accused some of having "bad intentions" that block rate cuts [1, 2]. He commented, "You need the agreement of some people, and those people may have bad intentions. Rates should be lowered." [2]

Warsh took office on May 22, 2026, succeeding Jerome Powell with a term through May 2030 [3]. Trump’s remarks came July 27 aboard Air Force One amid an approaching Federal Open Market Committee meeting scheduled for July 28-29, when the Fed would announce its interest rate decision [1, 3, 2].

The Fed has held its benchmark overnight interest rate steady at 3.5% to 3.75% since mid-2025 [1, 3, 4, 5, 2]. This is higher than rates in other major economies, such as the European Central Bank’s 2.25%, China’s 3%, and Japan’s 1% [1, 2]. Fed officials, including Dallas Fed President Lorie Logan, have expressed concern about persistent inflation and indicated the possibility of modest rate increases ahead [1, 2].

Markets largely expected the Fed to keep rates steady in the July meeting but priced in about a one-third chance of a 0.25% hike [1, 3, 4, 2]. Citadel Securities predicted a surprise 25 basis point hike [4].

Trump’s comments reflect ongoing tensions within the Fed on monetary policy. He urged lower rates, suggesting it would spur US GDP growth to 8% to 12%, significantly above recent trends [1, 3, 5, 2]. His support for Warsh contrasts with his criticism of other officials, illustrating divisions inside the central bank [1, 2].

The Federal Reserve is set to announce its interest rate decision after the July 28-29 Federal Open Market Committee meeting.