Updated

President Trump reiterated his demand for interest rates around 1%, arguing that the United States has the 'best credit in the world' and therefore deserves ultra-low borrowing costs. The comments came after the Federal Reserve instead opted to raise rates, deepening the rift between the White House and the central bank over monetary policy direction. The episode adds to a running debate over the appropriate path for U.S. interest rates amid conflicting signals on inflation, growth and fiscal sustainability, with market participants weighing the political pressure on the Fed against its stated data-dependent approach.