Why does the Federal Reserve want to keep interest rates at 4.25%-4.5%???
The Federal Reserve needs to find a point that can alleviate the current heavy interest burden in the United States without causing capital to leave the country.
If the Federal Reserve lowers interest rates a bit more, for example to the low threes, some funds will exit, as projects in other countries that yield above three will appear more cost-effective.
Therefore, it must hold this interest rate steady until either it can no longer sustain it, or it has found a reservoir to accept at least some of the funds.
Otherwise, the United States will face a collapse similar to what happened in 2022 when interest rates were raised, where Chinese real estate experienced a massive outflow of funds. At that time, a large number of Evergrande (banks) will go bankrupt in the U.S.
Trump's notion of a gradual rate cut does not exist; once it drops to a certain point, capital will begin to flee, exacerbating the U.S. predicament, while improving China's situation (the inflow and outflow of capital). It will be like holding in urine; once a little is released, it cannot be contained, leading to a mess.