Trump presses Fed to cut rates, urges Congress to pass crypto bill

US President Donald Trump on Wednesday (local time) argued that the strong performance of the American economy was precisely the reason interest rates should come down.

Speaking at a White House event with leading figures from the cryptocurrency industry, Trump said interest rates "should be able to go down based on our success, not go up because of our country's success."

"When we put out good numbers, they're so afraid of inflation that they keep rates high," he said. "There's no reason for that. Rates should be able to come down."

The remarks amounted to a fresh broadside against the Federal Reserve, which has kept rates elevated out of concern that inflationary pressures could resurface. Trump has repeatedly pressed the Fed to cut rates, arguing it has held them too high for too long.

Trump also used the event to urge Congress to pass the CLARITY Act, legislation designed to establish a regulatory framework for the US cryptocurrency market.

"We are ensuring that America remains the undisputed leader not only in bitcoin and crypto, but also in AI and many other areas of technology," he said. "Now Congress needs to pass this bill and take the next step."

He called the bill "a very powerful, structured piece of legislation that will keep us ahead of China and every other country," adding that it would "open the door to the next wave of innovation and innovators."

The CLARITY Act would classify virtual assets as either "securities" or "commodities" and divide regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The Trump administration expects the bill to reduce regulatory uncertainty surrounding virtual assets.

Trump has pursued crypto-friendly policies since returning to office in January last year. The Trump family is estimated to have earned more than $1.4 billion through family-owned cryptocurrency ventures and related businesses.

Democratic lawmakers and some Republican members have said they cannot support the bill unless it includes a provision barring politicians — including Trump — from profiting through cryptocurrency projects, Reuters reported.

Trump said at the event that the United States ranks first in artificial intelligence and China second, adding, "I don't want to underestimate China at all, but for the time being, we are far ahead."

He added that Chinese President Xi Jinping is scheduled to visit the United States on Sept. 24, and that the two leaders would "probably" discuss AI and many other issues.