President Donald Trump has criticized the Federal Reserve's approach to interest rates, arguing that the central bank is stifling economic growth with restrictive policies. In an interview with CNBC's Joe Kernen, Trump advocated for a target GDP growth rate of 12% to 13%, significantly higher than the current 4% ceiling, and expressed concern that positive economic indicators often trigger stock market declines due to an excessive focus on inflation.

Trump suggested that newly appointed Fed Chairman Kevin Warsh should be granted greater flexibility in decision-making regarding rate cuts. He criticized the current board's potential hostility and inclination towards incorrect decisions, stating that the U.S. should not limit itself to modest growth figures when other nations like India and Japan achieve higher rates. "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.

The Federal Reserve unanimously voted to keep the federal funds rate unchanged at 3.50%–3.75%, citing inflation levels that remain above its 2% target. The Fed attributed the persistent inflation partly to a recent spike in global energy prices. Trump had previously expressed disbelief at Warsh's decision to hold rates steady, arguing that such moves keep the country down and are unusual.

Treasury Secretary Scott Bessent defended the administration's aggressive trade policies and unveiled an economic blueprint aimed at achieving 3% GDP growth. The plan includes higher energy production and a 3% deficit-to-GDP ratio, which Bessent claims will reduce debt relative to the economy while neutralizing "structural inflation."

Despite the administration's optimistic targets, economist Mark Zandi warned of underlying risks in the U.S. economy. While the first quarter saw 2.1% growth driven by AI-related investment and corporate tax cuts, Zandi noted that consumer finances are deteriorating. He cited falling real disposable income and a historically low savings rate as key concerns, cautioning that weakening household finances pose a significant risk given that consumers account for more than two-thirds of U.S. GDP.

Key Economic Indicators

U.S. President Trump has confirmed the release of frozen Iranian funds designated for food purchases, marking a significant shift from the earlier position of withholding the $6 billion pending Tehran's compliance with a Memorandum of Understanding (MOU). Trump also stated that he does not wish to preside over a global depression, signaling the economic considerations behind the decision.

Background: The Frozen Funds Standoff

The United States had previously held back the entirety of the $6 billion in Iranian frozen funds earmarked for humanitarian goods under the terms of an MOU. A U.S. administration official, cited by the New York Post, had confirmed that the funds would remain frozen until Tehran met its obligations under the agreement. The following table summarizes the key parameters of the original standoff:

Trump's Reversal and Latest Confirmation

In a notable policy shift, Trump has now confirmed the release of the Iranian funds specifically for food purchases. Alongside this announcement, Trump stated that he does not wish to preside over a global depression, indicating that broader economic considerations have factored into the decision. No further details regarding the timeline or specific conditions attached to the fund release were available in the provided information.