Federal Reserve Rates Are Too High, Says Former World Bank Chief

Rates should be between 0.25 and 1.75 percent rather than the current range of 4.25 to 4.5 percent, according to Trump.

World Bank President David Malpass looks on during a press conference at the World Bank office in New Delhi on October 26, 2019. Photo by Sajjad Hussain/AFP via Getty Images

Former World Bank President David Malpass criticized the U.S. Federal Reserve for keeping its benchmark interest rate elevated, during a July 2 interview with CNBC.

The Fed began raising rates from near zero in 2022 in a bid to rein in inflation. They peaked at 5.5 percent in 2023. The central bank then cut rates multiple times last year, bringing them down to a range of 4.25 to 4.5 percent.