U.S. President Donald Trump urged the Federal Reserve to lower interest rates on July 27, escalating pressure on the central bank as policymakers prepare to gather for a two-day meeting beginning July 28. The current benchmark rate stands at 3.5% to 3.75%, with financial markets broadly expecting no change at this week's session.
Trump praised Fed Chair Kevin Warsh as "fantastic" while criticizing other Fed officials as overly political for favoring tighter policy. He called for the United States to have the lowest rates in the world. Dallas Fed President Lorie Logan, however, said rates need to be "moderately higher".
U.S. inflation stood at 3.5% in June, above the Fed's 2% target. Bank of America forecasts three quarter-point hikes later this year. Trump argued that resolving the U.S.-Iran conflict would quickly bring inflation down, though no formal ceasefire is in place.