Washington DC [US], September 17 (ANI): US President Donald Trump called for sharply lower interest rates following a decision by the Federal Reserve to raise its benchmark interest rate by 25 basis points to a target range between 3.75 per cent and 4 per cent, representing the initial rate increase since 2023 despite longstanding executive pressure for monetary easing.

In a post on Truth Social, Trump asserted that US interest rates "should be 1%, or less", maintaining that the nation warrants cheaper credit because "We (US) are the Best Credit in the World - By far. Our country is booming with new investment!" He further urged monetary authorities: "Lower the interest rates for the United States of America, and fast!"

In the same digital communication, Trump associated his demands for monetary relaxation with the national trade balance, asserting that the country could accumulate a minimum of $1.5 trillion annually by halting commerce with states generating a trade deficit.

'If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year,' he stated, adding, 'The word "Deficit" is nothing more than a fancy word for LOSS. We are "carrying" almost every country in the World, and that cannot go on any longer.'

The latest appeals for monetary relaxation coincided with the Federal Open Market Committee adjusting its target parameters on Wednesday, executing the first US rate hike since July 2023, when the range sat at 5.25 per cent to 5.50 per cent.

Explaining the rationale, central bank officials indicated that economic activity was advancing at a solid pace, supported by resilient domestic spending, robust capital investment and strong productivity growth.

Nevertheless, authorities noted that inflation remained elevated, rendering the rate increase necessary to facilitate a return towards the official 2 per cent target.

Defending the policy shift, Fed Chair Kevin Warsh stated, "The plain fact is that inflation is too high and has been for too long."

He added, "We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed. Today the FOMC decided that this standard has not been satisfied."

Prior to the central bank's announcement, the executive mansion registered opposition to the prospective monetary tightening, with senior deputy press secretary Kush Desai characterising the move as "unfortunate".

Desai contended that elevated rates would "stymie the economic progress" achieved under the current administration, drive up mortgage expenses and impede corporate expansion. (ANI)