President Donald Trump has renewed calls for U.S. interest rates to drop to 1% or lower, arguing that reduced financing costs would stimulate corporate investment and strengthen economic competitiveness. This target stands in sharp contrast to current monetary policy, as the Federal Reserve recently raised the federal funds rate target range to 3.75%-4.00%. Fed officials maintain that restrictive policy remains necessary despite White House pressure. Boston Fed President Collins supported the latest hike and warned that future inflation could remain significantly above the 2% target. With the labor market showing continued resilience, the central bank insists on maintaining higher rates to ensure inflation continues its downward trajectory.