Trump wants to force the federal reserve to cut interest rates, and some people are quite confused about one thing: if lowering interest rates is good for the economy, why not lower them?

First of all, the Federal Reserve does not take orders from the U.S. government; this is a premise.

The Federal Reserve's thinking is that not lowering interest rates, and the subsequent flooding of money after a cut, would lead to inflation, making it difficult to maintain the dollar's hegemonic status.

Trump's idea is to cut interest rates first, to bring manufacturing back; he is confident he can achieve his American Dream, and under his leadership, the U.S. can solidify the dollar's hegemonic position.

Currently, it seems that the Federal Reserve does not trust this newly elected president with a criminal record. When he first took office, the pandemic hit, and at that time, the Federal Reserve's interest rates were quite low, so even during the pandemic, when the world almost came to a standstill, the economy was still not that bleak.

Later, with Biden in power, interest rates rose above 5%, and the global economy was in a state of lament, as I'm sure you can all feel.

In Trump's second term, he still wants to return to the era of low interest rates, allowing him to recklessly wage trade wars and impose sanctions.

The reason for the U.S. disadvantage in this trade war is largely because the Federal Reserve and Trump are not on the same page.

In fact, neither of them is wrong; it seems more like a clash between conservatives and radicals, one wanting to maintain the status quo, and the other wanting to make changes.

There is no right or wrong; their goal is to maintain the dollar and U.S. hegemony.

Tonight's interest rates are actually not important, as 90% will likely remain unchanged; what matters is Powell's speech at 2:30, to hear whether his tone is hawkish or dovish. ..