File pic: Federal Reserve Chair Kevin Warsh
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US President Donald Trump reiterated that the US should have the lowest interest rates in the world even as his handpicked chair for the Federal Reserve, Kevin Warsh, faces renewed pressure to raise borrowing costs.“We should be paying — the United States is so strong — we should be paying the lowest interest rate in the world, regardless of their formulas,” Trump told reporters Sunday in Ireland, where he is attending the Irish Open. Asked if he expected the central bank to raise rates at its meeting next week, Trump said: “I don’t know.”Trump’s comments follow data released Friday showing US consumer prices rose more than expected in August. The Fed is likely to view those numbers as pushing it toward the first rate increase in three years. The inflation data led traders to boost expectations for a Fed hike, with an 86% chance of a move in September and two increases priced in by the end of the year. The US economy faces higher energy prices with the US war on Iran now in its seventh month, and Trump’s tariff policies have also complicated the picture for the Fed’s inflation target.Trump repeatedly assailed former Fed chief Jerome Powell for his unwillingness to lower borrowing costs more aggressively. While Warsh hasn’t faced the same pressure after taking over the central bank’s top post, Trump in recent weeks has signaled continuing frustration with the Fed’s policy stance.Even as Trump has vented his frustration with the Fed, he’s suggested that Warsh’s hands may be tied by what the president has called a “very political” board of governors. Earlier in September, Trump also floated cutting off trade with certain economies that the US has a trade deficit with if the central bank did not lower borrowing costs, but it was unclear how the threat would help ease rates.“I know more about formulas than anybody, and with the best credit in the world, we make other countries rich. We could turn that off in two minutes,” Trump said Sunday.Later, when asked by reporters if he would actually follow through with that threat, Trump said: “Yeah, I’m going to do that with some nations.” “It will take place over a period of time,” he said.Voters have given Trump poor marks on both the war and his handling of the economy. Concerns over higher costs of living that touch on energy, housing, healthcare and groceries are a top issue for voters ahead of November’s midterm elections that threaten to break Republicans’ control of Congress.(Updates with additional Trump comments starting in ninth paragraph)More stories like this are available on bloomberg.com©2026 Bloomberg L.P.Published on September 14, 2026
