Trump says US rates 'too high,' predicts Fed chief Warsh 'will do what he has to do'

US President Donald Trump said the country's benchmark interest rate is too high and indirectly pressed for a cut, saying Federal Reserve Chair Kevin Warsh "will do what he has to do."

Speaking to reporters at the White House on Monday (local time), Trump was asked whether he opposed Warsh's signals of a possible rate hike and whether he had discussed the matter with him. "No. I respect him a lot and he will do what he has to do," Trump said.

Trump then repeatedly stressed that US rates must come down, saying "our rates are too high" and that the United States "should have the lowest interest rates in the world" — an indirect call for cuts.

He also pushed back against the idea that economic strength fuels inflation. "Success and growth do not cause inflation. I don't like inflation either, but inflation is caused by other things," Trump said. "We don't need to raise rates when we're doing well. In many cases, we should be lowering them."

Warsh signaled at the Jackson Hole Economic Symposium in Wyoming on Friday that the Fed could raise rates if inflation fails to slow.

Any rate hike would put Warsh on a collision course with Trump, who has consistently pushed for lower rates. Warsh's predecessor, Jerome Powell, endured relentless pressure from Trump throughout his tenure — including personal attacks.

The Federal Open Market Committee, which sets the Fed's benchmark interest rate, holds its next meeting Sept. 15-16.