US President Donald Trump is urging the Federal Reserve to lower interest rates, citing the need to complement his upcoming tariff policies ¹. Trump believes that reducing interest rates would "go hand in hand" with the tariffs, which he plans to impose on automobiles, aluminum, and pharmaceuticals in the near future.
Why Lower Interest Rates?
Trump's goal is to maintain low tax rates in the United States. He thinks that lower interest rates would help achieve this objective. However, experts warn that Trump's policies could lead to inflationary pressures, which might prompt the Fed to raise interest rates instead .
Market Impact
The potential battle between Trump and the Federal Reserve has raised concerns among experts. They warn that this could lead to significant market volatility and impact the US economy .
