Trump Calls For Lower Rates

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Trump Calls For Lower Rates

Trump Calls For 1% Interest Rates, Criticizes Fed Powell

The US President Trump has once again called for lower rates in the USA. According to him, the interest rates in the USA should be 1.00% and he also expressed the idea that Jerome Powell should resign.

Trump made it very clear that he is not happy with the performance of Fed Chair Powell. He added that the Fed Chair is doing a very lousy job and should just resign.

Trump Wants Big Rate Cuts

The President commented on how they should only be paying an interest rate of 1% at max. However, it's not possible right now because of one guy (Fed Powell).

If we look back, these statements are not just a one-time event and show that Trump is not happy with the Federal Reserve. He has repeatedly called for bigger rate cuts as he wants lower rates in the country.

It's worth mentioning that Powell will remain the Fed chair till May 2026, which means there's still a lot of time left. However, experts believe that Trump is highly likely to nominate a successor for the Fed chair.

Trump wants someone in the Federal Reserve who will lower the rates to 1.00% only. As of now, the interest rate in the USA is between 4.25% and 4.50% range.

So, if Trump's wish comes true, the Federal Reserve would need to cut the rates by 3.25% - 3.50% in the coming months. Meanwhile, the Federal Reserve has left the rates unchanged for now as it monitors the upcoming data.

It appears that the Federal Reserve will continue with its policy while ignoring the comments from the US president. However, we can expect a big change in the policy once Trump places a new Fed Chair who is more aligned with his goals and policies.

Also, the interest rates in the USA are very closely related to inflation and the job market. Any big rate cuts could send the inflation higher and even heat up the US economy.

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