🚨President Donald Trump has repeatedly called on the Federal Reserve to lower its benchmark interest rate to 1% or less, arguing that such a move would stimulate the economy, lower the cost of government debt, and boost the housing market. He has publicly criticized Fed Chair Jerome Powell, whom he appointed, for keeping interest rates at a higher level than he believes is necessary.⬇️
🔴Economists and analysts have cautioned against such a drastic rate cut, warning it could risk re-igniting inflation, which remains above the Fed's 2% target. They also emphasize the importance of the Fed's independence from political pressure to ensure its credibility and maintain long-term economic stability. While a 1% rate has occurred historically, it has often been a response to economic crises. The current administration's pressure on the Fed has been a recurring theme, creating a source of tension and debate over the central bank's role.