Trump cites India's growth as US benchmark

Washington, July 3 (IANS) US President Donald Trump pointed to India as one of the world's fastest-growing major economies, arguing that the United States should be achieving much higher economic growth instead of being constrained by concerns over inflation and interest rates. 

In an interview with CNBC, Trump praised India's economic performance while criticising the US Federal Reserve for what he described as an overly cautious approach to monetary policy.

"You have a couple of countries, India is one, doing very well, but it's at 7, 8 per cent," Trump said.

"We're not allowed to go up. If we go up, they want to kill it."

Trump argued that the United States should be targeting much faster economic expansion.

"There's no reason we should stop at 4 per cent. We should be at 12 and 13 per cent GDP."

The President made the remarks while discussing interest rates following the release of stronger-than-expected US employment data.

He said financial markets had developed what he called "this horrible derangement syndrome about inflation", where positive economic data often led investors to expect higher interest rates.

"I wish I could flip it the old way, that when you announce great numbers," Trump said, recalling a time when strong economic data typically boosted financial markets.

He argued that economic growth should not automatically be viewed as inflationary.

"Growth can be good for inflation, not just bad for inflation."

Trump also painted a positive picture of the US economy under his administration, describing the country as being in a "Golden Age."

"We have more factories being built today than ever before."

"We have more people working today than at any time ever in the history of our country."

He also claimed American workers were earning more than ever before.

"I'm not talking about rich people, I'm talking about people that have like normal or normalised jobs, more money than they've ever made before."

Trump said the stock market had repeatedly reached record highs during his presidency.

"The stock market's at an all-time high."

Comparing his current administration with his first term, Trump said the economic performance had surpassed his earlier record.

"First term was great financially. This is, I think, blowing it away."

The President also renewed his criticism of Federal Reserve policymakers, saying they risked slowing economic momentum by keeping interest rates too high.

"I really think that I would love to be able to get back... when you announced great numbers, the stock market went up."

He added that policymakers should encourage economic strength rather than restrain it.

India has remained one of the world's fastest-growing major economies in recent years, with growth supported by domestic consumption, investment and government-led infrastructure spending. The country has also attracted increasing global investment as multinational companies diversify supply chains and expand manufacturing beyond China.

Economic ties between India and the United States have expanded steadily over the past decade, with growing cooperation in trade, technology, semiconductors, clean energy and defence. The two countries are also working to deepen investment and supply chain partnerships as part of their broader strategic relationship.