US President Donald Trump during an announcement in the Oval Office of the White House in Washington, DC, US, on Friday, July 24, 2026. <\/p>\n
Bonnie Cash | Bloomberg | Getty Images<\/p>\n
President Donald Trump<\/a> on Monday voiced support for Federal Reserve Chairman Kevin Warsh<\/a> while insisting that the U.S. should have the lowest interest rates in the world.<\/p>\n While backing his choice to lead the central bank, Trump questioned the motives of other members of the Fed’s Board of Governors for not wanting to ease monetary policy.<\/p>\n “Kevin’s fantastic, but he’s got a board, and the board members are very political, I would say,” the president said during a session with reporters on Air Force One. “He wants to do the right thing. I know what he wants to do.”<\/p>\n The president’s comments came two days before the bank’s Federal Open Market Committee, or FOMC, releases its latest interest rate decision. Markets are pricing in a strong chance that officials will vote to stay on hold, as they have all year, though they’re leaving open about a 1-in-3 chance of quarter percentage point hike, according to the CME Group’s FedWatch<\/a> tool.<\/p>\n Several Fed officials in recent days have expressed concern about persistently high inflation. Dallas Fed President Lorie Logan, a voting FOMC member this year, was the most explicit in calling for tighter policy<\/a>, saying benchmark rates should be “modestly higher.”<\/p>\n In his remarks, Trump, as he has done in the past, accused Fed officials of having ulterior motives.<\/p>\n “You need the consent of some people that have perhaps bad intentions. Rates should be lowered. This country could be at 8%, 9%, 10%, 12% [annualized growth of] GDP. That’s what it should be,” he said. <\/p>\n “We should have the lowest interest rate in the world, like it used to be 30 years ago,” he added.<\/p>\n The Fed’s benchmark overnight borrowing rate is currently targeted in a range between 3.5%-3.75%, where it has been since the central bank lowered by three-quarters of a percentage point in second half of 2025.<\/p>\n The rate is essentially the same as the Bank of England, but is above the 2.25% for the European Central Bank, Japan’s 1% and China’s 3%.<\/p>\n