President Trump: US interest rates "should be much lower"

VTV.vn - President Trump said he "is looking for someone who will be honest about interest rates" and that US interest rates "should be much lower."

US President Donald Trump (Photo: ABACA/Shutterstock)

On December 10, U.S. President Donald Trump said the Federal Reserve should have cut interest rates by double the 0.25 percentage point reduction it had just made. Trump, who has long urged the Fed to cut rates to boost economic growth, argued that Fed Chairman Jerome Powell was "rigid" in approving such a "relatively small" rate cut.

During a roundtable meeting with executives at the White House, President Trump also indicated he planned to interview former Fed Governor Kevin Warsh on the afternoon of December 10th. Warsh and National Economic Council Director Kevin Hassett are the two leading candidates to succeed Fed Chairman Powell when his term ends in May 2026.

President Trump said he was “looking for someone who will be honest about interest rates” and that U.S. interest rates “should be much lower.” At the roundtable, President Trump also complained about what he called the trend of rising interest rates following strong economic results.

Fed Chairman Powell has become a primary target of criticism from President Trump, who believes the Fed has been too slow to lower interest rates in the first year of his second presidential term.

President Trump's comments came shortly after the Fed announced its third consecutive interest rate cut in 2025 at its two-day meeting on December 9-10. Accordingly, the US federal funds rate was brought down to a range of 3.5% - 3.75%, the lowest level since November 2022.

This decision represents a middle ground in the Fed's divided stance: Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid want to keep interest rates unchanged. Conversely, Fed Governor Stephen Miran favors a more aggressive interest rate cut of 0.5 percentage points.

In a subsequent press conference, Fed Chairman Powell stated that this interest rate cut was "a difficult decision" and allowed the Fed to "wait and see how the economy develops." According to him, President Trump's tariffs had caused "relatively high" inflation in the US.

According to CNBC, the Dow Jones Industrial Average surged on December 10th after the Fed decided to continue lowering interest rates this year and as traders bet on the possibility of further easing of US monetary policy next year.

Wall Street viewed several points in the Fed's message, as well as in subsequent statements by Fed Chairman Jerome Powell, as positive for the stock market. Notably, the Fed announced it would begin purchasing short-term bonds, expanding its balance sheet. Short-term Treasury yields fell following this announcement.

The Fed also drew attention to the weak labor market in its announcement, omitting the wording that the market “remains at lows.” This suggests the US central bank is shifting toward supporting the economy rather than controlling inflation.

While Fed Chairman Powell said the Fed would have to “wait and see” before deciding on its next step, he also virtually ruled out the possibility of raising interest rates. The Fed projected only one rate cut in 2026, but traders are betting that the Fed will cut rates more often.

Source: https://vtv.vn/tong-thong-trump-lai-suat-cua-my-nen-thap-hon-nhieu-10025121116072032.htm