Fed’s Modest Rate Cut Plan Clashes With Trump’s Aggressive Demands
The Federal Reserve is poised to implement a quarter-point interest rate reduction this week, lowering its benchmark to a 4%-4.25% range. This measured approach starkly contrasts with President Trump's public demands for drastic cuts exceeding three percentage points.
Trump intensified pressure on Fed Chair Jerome Powell through social media, deriding his cautious stance with the nickname "Too Late" and demanding more aggressive action. The President's repeated interventions highlight growing tensions between the WHITE House and the supposedly independent central bank.
Market observers note the Fed's restraint reflects concerns about inflationary pressures from Trump's trade policies. The central bank appears committed to its gradualist approach despite political pressure, maintaining rates at levels designed to temper economic growth.