President Donald Trump on Wednesday lashed out again at the Federal Reserve, insisting that strong economic data should not prevent the central bank from cutting rates.
Trump accused Fed board members of harboring political motivations, suggesting their rate decisions may be driven by ideology rather than sound economic policy.
He praised Fed Chairman Kevin Warsh, whom he nominated earlier this year, saying Warsh is doing a “great job” since taking over the position in May.
Warsh succeeded Jerome Powell, whom Trump had repeatedly pressured to lower rates faster, though Powell remains on the board as a governor.
“The problem is he has a board, and it’s a political board,” Trump told reporters. “People put in by Obama, Biden, and me, and there are quite a few members still left, as you understand, and so they vote to raise interest rates.”
Trump added: “I don’t know if they’re doing it because they think they’re doing a good thing or because they like the politics of it.”
In reality, the Fed has not voted to raise its benchmark interest rate in more than three years, having cut rates three times in 2025 after three reductions the year prior.
Trump argued the pace of cuts remains insufficient, saying reductions are necessary to sustain economic growth and ease the financing burden on the nation’s nearly $40 trillion debt.
“My point is, years ago, 25 years ago, when the country announced good numbers, interest rates went down because we had a stronger country,” Trump said. “Now, when we announce good numbers, the better they are, the worse it is for interest rates.”
Trump’s remarks landed on the same day the Federal Open Market Committee released minutes from its July meeting, which showed that “many” officials expected higher rates to remain necessary unless inflation demonstrates further progress.
The annual inflation rate remains well above the Fed’s 2% target, even as recent data has trended in a more favorable direction.
The U.S. economy expanded at a 1.5% annualized rate in the second quarter, falling short of expectations and trailing the 2.1% growth recorded in the first quarter.
Trump also drew comparisons between U.S. interest rates and those of global competitors, singling out Switzerland as an example of a country operating with far lower borrowing costs.
“I see countries like Switzerland where they’re the number one lowest interest rates, a half a percent, and we pay three and a half percent,” he said. “I have the absolute right to cut off all business with a country like Switzerland.”
Despite his rate frustrations, Trump said he does not believe the U.S. faces a bond market problem, even as he continues to argue that current rates are unfairly elevated.
Earlier Wednesday, the Treasury Department announced it would expand its bond buyback program, specifically targeting debt with a duration of at least 10 years, following a surge in longer-maturity yields.
