💥 **Trump Demands DRASTIC Rate Cuts: "We Should Be at 1% or 2%!"** 📉🔥
Current Fed Rate:** **4.25% - 4.50%** 🏦
*(Held steady since December 2024)*
Trump’s Bold Demand** 🗣️
- **"We should be paying 1% right now!"** – Trump insists ultra-low rates would save the U.S. **$600B–$1T/year** in debt costs .
- **Calls Powell "stupid" and a "numbskull"** for resisting cuts despite cooling inflation .
- **Threatens to "force something"** if the Fed doesn’t act, hinting at political pressure to replace Powell .
Why Trump Wants 1-2% Rates** 💡
1. **Stimulate Growth**: Cheaper loans = more business investment & consumer spending .
2. **Reduce Debt Burden**: Lower rates = less interest on U.S. debt .
3. **Counter Tariff Inflation**: Offsets price hikes from his trade policies .
Fed’s Response & Predictions** 🎯
- **Powell Resists**: The Fed prioritizes **2% inflation control** and warns tariffs could spike prices .
- **Projected Cuts**:
- **2 cuts (0.25% each) in 2025** (likely Sept & Dec) .
- **Terminal rate of ~3.25% by 2026** (far above Trump’s 1-2% goal) .
- **Risks**: Aggressive cuts could **reignite inflation**, hurting savers & retirees .
Market & Crypto Impact** 📊🚀
- **Stocks**: Rate cuts = short-term rally, but volatility if inflation rebounds .
- **Crypto Boom**: Bitcoin & Ethereum could surge as investors chase riskier assets .
- **Dollar Weakness**: Lower rates may reduce global demand for USD .
Bottom Line** ⚖️
Trump’s pressure is **unprecedented**, but the Fed likely won’t slash rates to 1-2% without a **recession** . Expect **gradual cuts**, market swings, and a high-stakes Fed vs. White House showdown! 💥