Sept. 13 (UPI) — U.S. President Donald Trump on Sunday again called on the U.S. Federal Reserve Bank to cut interest rates, even as the market expects the central bank to increase its benchmark lending rate as oil prices and Treasury yields rise.
“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 in Ireland, where he is attending the Irish Open.
His remarks came after government data released Friday showed that consumer prices rose more than expected last month, which is likely to push the Fed to raise the fed funds lending rate for the first time in three years.
According to CME Group’s Fed Watch tool, more than 86% of market participants expect the rate-setting Federal Open Market Committee this week to raise the rate 25 basis points to between 3.75% and 4%.
Trump earlier this month suggested cutting off trade with some countries that have a trade deficit with the United States if the Fed did not cut rates.
“I know more about formulas than anybody, and with the best credit in the world, we make other countries rich,” Trump said Sunday. “We could turn that off in two minutes.”
When asked by reporters later if he would carry out the threat, Trump responded, “Yeah, I’m going to do that with some nations.”
Polls have shown that voters roundly disapprove of how Trump has handled the economy and war with Iran. Concerns about the rising cost of living ahead of the November midterm elections, which could end Republican control of Congress.