UNITED STATES. “Cut rates, and quickly! »: Donald Trump criticizes the rate hike decided by the Fed

The central bank of the United States unanimously raised its interest rates in order to calm inflation, a measure opposite to what Donald Trump expected when appointing Kevin Warsh at the head of the institution. The Federal Reserve (Fed) had not raised its key rates, which guide borrowing costs, since the summer of 2023. They were increased by a quarter of a point to reach a range between 3.75% and 4%.

Inflation has been “too high, for too long”, justified the president of the monetary institution Kevin Warsh at a press conference. Price growth was still 3.7% year-on-year in July, according to the PCE index favored by the Fed, well above its 2% target. Since then, prices at the pump have jumped.

The inflation impasse

The Federal Reserve estimates that another increase in interest rates will likely be necessary by the end of the year to combat inflation. This is visible in the updated forecasts of American monetary officials. For investors, inflation left Kevin Warsh with little choice but to disappoint the tenant of the White House.

There Fed Did it feel obliged to act because it was the outcome expected by the markets? “It was our decision,” assured Kevin Warsh. Shortly after the announcement, the White House deemed the decision of the American central bank “unfortunate”.

“LOWER RATES FOR THE UNITED STATES OF AMERICA, AND FAST!” », then demanded Donald Trump on his Truth Social network. “Interest rates in the United States should be 1% or less,” judged the American president, while the Fed has just raised them by a quarter of a point to reach a range between 3.75% and 4%.