Trump: "U.S. Interest Rates Should Be the Lowest in the World"... "High Rates Are Unfair" (Roundup 2)

"Zelensky Should Halt Attacks on Russian Diesel Facilities"

"Not Worried About Possibility of Xi Canceling U.S. Visit"

Reuters Yonhap News

U.S. President Donald Trump has ramped up pressure ahead of this week’s Federal Open Market Committee (FOMC) meeting, insisting that the U.S. benchmark interest rate should be the lowest in the world. While financial markets now see a high likelihood of a rate hike this month due to factors such as rising energy prices driven by the war in Iran, Trump instead emphasized that rates should be cut. He said the war in Iran—which is cited as a primary cause of inflation—would likely only end after the November midterm elections, but also pointed to Ukraine’s recent attacks on Russian diesel facilities as driving up diesel prices.

Visiting Ireland, President Trump spoke to reporters on the 13th (local time) at his Doonbeg golf resort, stating, "The United States should have the lowest interest rates in the world," and added, "It doesn’t matter what economic indicators show." His comments were widely interpreted as a public attempt to pressure the Federal Reserve (Fed) to lower rates ahead of the FOMC scheduled for the 15th and 16th. The current U.S. benchmark interest rate stands at 3.50–3.75% per annum.

"The U.S. Should Have the Lowest Interest Rates in the World"

When asked for his FOMC forecast, Trump said, "I don’t know," but again argued that it’s unfair for the U.S. to bear higher interest rates compared to other countries. He also reiterated the need for rate cuts by warning that the U.S. could halt trade with countries running trade surpluses against it. Trump contends that it is wrong for the creditworthy United States to have benchmark rates in the high 3% range and argued that this allows products from low-interest-rate countries to sell better in the U.S., resulting in unfair trade deficits.

Recent inflation data in the U.S., however, suggests the Fed is in a difficult position to consider rate cuts. The Producer Price Index (PPI) rose by 0.4% month-on-month and by 5.4% year-on-year in August. Inflated energy prices have sharply increased broader inflationary pressure. According to CME FedWatch, markets currently reflect a probability of about 85–86% that the Fed will lift rates by 0.25 percentage points at this FOMC. However, Kevin Hassett, White House National Economic Council (NEC) Director, said while President Trump wants lower rates, he still supports Fed Chair Kevin Warsh’s independence.

"Stop Attacks on Russian Diesel Facilities... Surging Prices Are Zelensky’s Fault"

With U.S. diesel prices surging past $6 per gallon for the first time ever, the cost of living is fast becoming a central issue for the upcoming November midterm elections.

On this day, President Trump attributed the spike in diesel prices to Ukraine’s attacks on Russian oil refineries. "We spoke with Ukrainian President Volodymyr Zelensky about the issue," Trump said. "There are many other potential targets, so we urged them not to hit facilities related to diesel fuel." He went on to warn that Ukraine’s attacks are causing a global shortage of diesel, adding, "There needs to be a halt to the destruction of Russia’s diesel infrastructure." By not citing the Iran war or limited output increases from the U.S. oil industry as causes for surging diesel prices, Trump is seen as pinning the blame for cost-of-living increases on foreign factors.

"Not Worried About Xi Jinping Canceling U.S. Visit... Excellent Relations with China"

President Trump also expressed confidence that his summit with Chinese President Xi Jinping, scheduled for the 24th, will proceed as planned. When asked whether he had concerns about Xi possibly canceling the trip due to the war in Iran, Trump said, "No."

He stated, "We have an excellent relationship," and added, "I wish him well, and I hope he wishes the same for us." Trump went on to contend, "China treated us very fairly during the years I was in office. It was under the Biden and Obama administrations that China amassed immense gains."

If President Xi’s trip goes ahead, it will mark his first visit to Washington since 2015. Although Trump visited China in May for a summit, the two countries failed to break deadlock on key issues like extending the trade truce. As a result, this upcoming summit is expected to focus on tariffs and trade disputes, controls on advanced semiconductor exports, the Taiwan issue, and freedom of navigation through the Strait of Hormuz.

Some observers hope that the U.S. can leverage China’s close relationship with Iran to influence the crisis, but others doubt that China will directly pressure its strategic ally. On the 12th, the BRICS summit—led by China and Russia—adopted the "New Delhi Declaration" in India, opposing unilateral sanctions lacking international legal grounds and calling for a de-escalation of military tensions in the Middle East. This is interpreted as a signal of concern directed toward the U.S., which has been in confrontation with Iran since late February.

This content was produced with the assistance of AI translation services.