The Interest Rate Dispute: Trump's "Three Percentage Points" Target
"The Federal Reserve's interest rates are at least 3 percentage points too high!"
Trump's accusation sounded like thunder. In his view, every percentage point of interest rate deviation means the United States loses a whopping $360 billion a year in debt refinancing. He pointed the finger directly at Federal Reserve Chairman Powell, labeling him as 'Mr. Too Late,' believing that his conservative stance is stifling economic vitality—after all, 'there is no inflation now, and numerous companies are flocking to the United States,' wouldn't a rate cut be a natural outcome?
However, behind this thunderous fury lies a plethora of controversies. Economists are well aware that the ghost of inflation has not completely vanished. Recent warnings from Federal Reserve governors indicate that trade policies may continue to push prices up [based on the inflation background in search], and hasty rate cuts could reignite the flames of inflation. Moreover, some point out that Powell's caution is precisely to leave room for future policy—models from the New York Fed show a 9% chance that interest rates will return to zero in the coming years; if ammunition is exhausted too early, there may be no measures to take when a crisis arises.
Trump's demand for a rate cut is, in fact, an ancient struggle between political will and monetary independence. He threatened to appoint a 'shadow chairman' to pressure the Federal Reserve, exposing his intent to erode the independence of the central bank. As Voltaire once said: "When politics shakes the balance of interest rates, the economy must tremble under the unbalanced pointer." Ultimately, the Federal Reserve's interest rate decisions must tread carefully on the tightrope between growth and stability, the present and the future.
Monetary policy has never been a whimsical move on the chessboard of commerce. The call for a 3% rate cut may create ripples, but the true meaning of economic governance lies in safeguarding the island of professional rationality amidst the clamor of many voices—after all, the cost of the inflation tiger returning to the mountains is far beyond what a hundred billion figure can measure.
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