Trump Urges Fed Rate Cut as Inflation Threat Grows

President Donald Trump has once again called for an immediate cut in interest rates by the Federal Reserve, suggesting they hold a “special meeting” to address the issue. He argues that lowering rates would benefit the economy, reduce the cost of servicing the $39 trillion national debt, and stimulate growth in areas like housing and the stock market. Trump has been critical of Fed Chair Jerome Powell, claiming he is “too late” and harming the country with high rates. Despite Trump’s calls, market expectations currently indicate a very high probability that the Fed will maintain its current rate of 3.50% to 3.75% at its upcoming meeting. Rising oil prices due to geopolitical tensions, particularly with Iran, are contributing to inflation concerns, potentially prompting the Fed to consider rate hikes rather than cuts. While a change in Fed leadership in May could shift the approach, analysts believe the Fed will likely adopt a wait-and-see approach.

(Source：Cointelegraph)