Trump Pressures Fed to Cut Rates Again, Says Strong US Economy Shouldn't Be 'Punished' by Hikes

(Central News Agency, Washington, comprehensive foreign report on the 7th) Following the release of a strong jobs report in the US last week, which raised market expectations for an interest rate hike, President Trump immediately pressured the Federal Reserve's new Chair, Kevin Warsh, to cut rates before he chairs his first rate-setting meeting.

According to the Financial Times, in an interview aired on the 7th, Trump stated that while investors expect the Fed to raise rates by the end of the year, the country should not be 'punished by an immediate rate hike.'

Trump told NBC's 'Meet the Press' program, 'There is no reason to raise rates. We are developing because we are doing well and rates are low. Every time they raise rates, they are trying to kill the economic achievement. I don't want success to be killed. We should actually be cutting rates.'

Warsh is scheduled to chair his first Federal Open Market Committee (FOMC) meeting on the 16th and 17th.

Trump argues that the Fed's current benchmark rate, between 3.5% and 3.75%, should be drastically cut to 1% or lower. He has also repeatedly criticized former Chair Jay Powell, calling him an 'idiot' and a 'dummy,' and believes Powell was too slow to cut rates.

On the 5th of this month, the US Bureau of Labor Statistics (BLS) released the May nonfarm payrolls report, which showed the labor market stabilizing after a turbulent 2025. This further fueled market expectations that the Fed might announce a rate hike to combat inflation sparked by the war with Iran.

Trump emphasized in the program, 'We are doing great, but every time you do well, they want to raise rates. It's very unfair. It should actually be the opposite.'

Warsh has also previously expressed a preference for lower borrowing costs. However, the outbreak of the Middle East conflict has pushed up inflation, leading some FOMC members to discuss the possibility of a rate hike.

Cleveland Federal Reserve Bank President and FOMC member Beth Hammack said on the 5th, 'If recent trends continue, action may be needed soon.' She noted that the latest jobs report shows the labor market is 'broadly in balance,' but 'high inflation is the bigger concern.'

Since Iran closed the Strait of Hormuz at the start of the conflict, rising fuel prices have weighed on the US economy. The inflation rate rose to 3.8% in April, a three-year high. A Bloomberg survey of economists expects inflation to potentially surge to 4.2% when the May Consumer Price Index (CPI) is released on the 10th.

However, Trump also stated that he wants the new Fed Chair to make independent decisions. 'Warsh is good. I want him to make decisions based on his own thinking. I don't want to have too much influence on him. But in my view, when the country is doing well, it shouldn't be punished by an immediate rate hike; it should be encouraged instead.' (Translation: Shishi) 1150608