CoinVoice has learned that, according to Jinshi reports, U.S. President Trump recently suggested that the Federal Reserve lower the benchmark interest rate to 1% to reduce government borrowing costs. Economists point out that in the current economic environment of a 4.1% unemployment rate and a 2.5% inflation rate in the U.S., such a significant rate cut could potentially drive inflation back up and undermine the independence of the Federal Reserve's policies. Historical data shows that a 1% interest rate typically occurs during economic crises, such as the 2008 financial crisis and the pandemic in 2020.
Analysis indicates that the "Too Big to Fail Act" passed by the Trump administration is expected to expand the fiscal deficit, and if combined with aggressive rate cuts, it may intensify market concerns about inflation. Federal Reserve officials emphasize that there are risks associated with significant rate cuts until the impact of new tariff policies on inflation becomes clear. [Original link]