U.S. President Donald Trump says the Federal Reserve should set its benchmark interest rate at 1% to lower government borrowing costs, allowing the administration to finance the high and rising deficits expected from his spending and tax-cut bill,

President Donald Trump wants the Federal Reserve to slash interest rates to 1%, arguing it would make government borrowing cheaper and boost the economy. But rates that low haven’t been seen since the dot-com crash, the 2008 financial crisis, and the COVID-19 pandemic. They’re typically a crisis response, not a sign of economic strength.

President Donald Trump’s pressure campaign against the Federal Reserve and Chair Jerome Powell to lower interest rates entered a new front this week

WASHINGTON, July 9 (Reuters) - U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower the federal benchmark interest rate by at least 3 percentage points, renewing his call for the U.S. central bank to lower rates to help reduce the cost to service the nation's debt.

The central bank is quietly pushing back with a new “Frequently Asked Questions” page on its website defending the central bank’s renovation.

Powell has been repeatedly criticized by the president over the U.S. central bank’s resistance to cut interest rates despite Trump’s demands to do so. In an interview with ABC’s “This Week,” Hassett was asked if the president has the authority to order Powell’s removal.

President Donald Trump has signaled he’s already looking to replace Federal Reserve Chair Jerome Powell far earlier than usual. Here’s how a so-called ‘shadow’ Fed would work, and why it could cause problems for markets.