Trump Slams Fed's High-Interest Rate Policy Again, Says the U.S. Should Bear Lower Financing Costs

BlockBeats News, August 20th - On Wednesday, US President Trump once again criticized the Fed's interest rate policy, stating that despite positive economic data, the central bank should not refrain from cutting rates and suggesting that the US should pay "much lower" rates.

Trump praised Fed Chair Kevin Warsh for doing a "great job" but criticized the Fed board for having "political factors," suggesting that some members appointed by Obama, Biden, and himself may support maintaining high rates for political reasons.

Trump mentioned that in the past, improved economic data would usually lead to rate cuts, but now "the better the data, the higher the rates." He believed that rate cuts would not only help economic growth but also reduce the financing pressure on the US debt of nearly $40 trillion.

However, the Fed has not raised rates since 2023 and began a rate-cutting cycle in the second half of 2025, with a total of 6 rate cuts. The minutes of the Fed's July meeting indicated that most officials believed that if inflation did not cool down further, it might still be necessary to maintain relatively high rates in the future.

Trump also complained that US rates are higher than those of some foreign economies, citing Switzerland's benchmark rate of about 0.5% as an example, and calling the current US rate of around 3.5% "unreasonable."

On the same day, the US Treasury announced an expansion of the long-term Treasury repurchase program, doubling the size of the buybacks for 10 to 30-year bonds, increasing it from a one-time $20 billion to $40 billion, to enhance liquidity in the long-term bond market. The market believes that this measure will help alleviate the recent upward pressure on US bond yields.