A Fed policy rate that low is not typically a sign that the U.S. is the "hottest" country in the world for investment, as Trump has said.

Governor Christopher Waller's comments come as tensions between Fed Chair Jerome Powell and President Donald Trump have reached a boiling point in recent days.

If investors start to worry the Fed is no longer independent, fewer may buy U.S. bonds, which would push up the interest rate on those bonds and lift borrowing costs more broadly.

President Trump's push for 1% Federal Reserve rates faces economist warnings about potential inflation risks. Historical data shows such low rates typically signal economic crisis rather than prosperity.

President Donald Trump wants the Federal Reserve to slash interest rates by three percentage points, a massive cut that could push borrowing costs back to pandemic lows. With two seats at the Fed likely opening up soon, he may finally get the chance to reshape the central bank and force the aggressive easing he is demanding.

The White House has been trumpeting the absence of tariff-related price hikes as a sign that the president’s agenda is succeeding.

Gold prices rose on Wednesday as markets assessed US President Donald Trump's call for an immediate interest rate cut, despite data indicating a rise

Two of President Donald Trump's contenders to succeed Federal Reserve Chair Jerome Powell are increasing their alignment with the president in hopes to secure the nomination.