Trump Urges the Federal Reserve to Cut Interest Rates to 1%

Donald Trump has called on the Federal Reserve to lower interest rates to around 1%, citing concerns about current financial policy. The former president expressed his views on Fox News' "Sunday Morning Futures" program, sparking discussions about potential economic impacts. The request to lower interest rates may lead to increased volatility in the financial markets. Investors may react quickly, translating Trump's statements into economic forecasts. In a statement, Trump criticized Fed Chairman Jerome Powell for keeping interest rates "artificially high," emphasizing the significant economic disparity between the United States and countries with lower interest rates. The Trump administration has hinted that it will replace Powell before his term ends in 2026. The possibility of replacing the Fed chairman has caused fluctuations in the global bond market. Trump's call for lower interest rates may resonate across many sectors, spurring discussions on adjusting fiscal policy. The financial impacts include the ability to reduce the debt repayment costs of the United States and changes in the strategy of the Federal Reserve. However, the market's reaction to Trump's criticism remains mixed, indicating potential economic uncertainties. Cryptocurrency analysts believe that a more accommodative monetary policy could positively impact BTC and ETH prices. Previous events when interest rates were significantly cut have witnessed a surge in these markets, demonstrating the correlation between the actions of the Federal Reserve and digital currencies.

"We should aim for 1% or 2%." - Donald Trump, President, United States, source