Trump claims that the high cost of U.S. debt repayment is also a reason for the Federal Reserve to lower interest rates, which economists do not agree with.

U.S. President Donald Trump has been calling for the Federal Reserve to lower interest rates for months, and now he adds a new reason to this viewpoint: lowering interest rates is crucial for reducing government debt costs. Shortly after returning to the White House, Trump began pressuring Fed Chairman Jerome Powell to take stimulus measures during the economic transition to higher tariff levels. Now, Trump states that it is necessary to lower interest rates to address one of the main reasons behind the high federal budget deficit. Data released by the U.S. Treasury last week showed that over the past eight months, federal debt interest expenses amounted to approximately $776 billion. This represents a 7% increase compared to the same period last fiscal year, while the interest burden from the previous fiscal year had already risen to the highest level since the 1990s. This figure now far exceeds defense spending, reflecting the sharp expansion of the scale of outstanding debt—affected by COVID-19 spending and multiple tax cuts this century—as well as the legacy of high-interest rates implemented by the Fed to combat inflation. Moody's stated last month when it downgraded the U.S. sovereign rating that rising debt costs are one of the key reasons for the downgrade.