Trump Wants the US Economy Growing at Over 12% and Says the Fed Keeps Trying To 'Kill It' With Higher Rates

President Donald Trump has advocated for more flexibility in the Federal Reserve’s approach to interest rates and economic growth. In an interview with CNBC’s Joe Kernen on Thursday, Trump suggested that the newly appointed Fed Chairman, Kevin Warsh, should be given more leeway in making decisions about rate cuts. He expressed concerns about the current board’s potential hostility and inclination towards making incorrect decisions. The President criticized the current situation where positive economic figures often result in a stock market decline, attributing this to a “horrible derangement syndrome about inflation”. He expressed his desire to return to the previous practice, where good economic numbers would lead to a stock market rise. Furthermore, Trump voiced his disapproval of the current practice of curbing economic growth by increasing interest rates. He also cited an example of India and Japan as countries with high GDP growth rates and stated that the U.S. shouldn’t limit itself to a 4% GDP growth but should aim for 12% to 13% GDP growth, similar to past figures. “We’re not allowed to go up. If we go up, they want to kill it. There’s no reason we should stop at 4%. We should be at 12% and 13% GDP,” said Trump. Read Also: Elon Musk Responds to 'Crash Is Coming' Narrative, Says 'Momentary Dips' Exist but 'The Macro Trend Is Overwhelmingly Up' Bessent’s Growth Push Vs Zandi’s Warning Earlier in June, Trump had expressed disbelief at Warsh’s decision to keep interest rates steady, a move he had previously criticized. He had stated that such a decision keeps the country down and is unusual. The Fed unanimously kept the federal funds rate unchanged at 3.50%–3.75%, noting that inflation remains above its 2% target, partly due to a recent spike in global energy prices. Meanwhile, Treasury Secretary Scott Bessent defended the administration’s aggressive trade policies and unveiled a comprehensive economic blueprint aimed at 3% GDP growth, higher energy production, and a 3% deficit-to-GDP ratio, which Bessent said would reduce debt relative to the economy while neutralizing “structural inflation.” However, economist Mark Zandi warned that despite 2.1% growth in the U.S. economy for the first quarter, driven by AI-related investment and corporate tax cuts, consumer finances are deteriorating, citing falling real disposable income and a historically low savings rate. With consumers accounting for more than two-thirds of U.S. GDP, Zandi cautioned that weakening household finances pose a significant risk to economic growth. Read Also: Chamath Palihapitiya Says AI Could Deliver An 'Economic Miracle,' Boost US GDP By Up To 50% Image via Shutterstock