On the eve of the Federal Reserve's interest rate meeting, Trump exerts pressure again: "Significantly cut interest rates" this week!
On the eve of the Federal Reserve's crucial meeting, U.S. President Trump predicted that the Federal Reserve would take "significant rate cuts" measures. He stated that now is the best time to cut rates. The market widely expects the Federal Reserve to announce a rate cut on September 17, with economists predicting a 25 basis point cut. Trump has been pressuring Federal Reserve Chairman Powell to push for rate cuts and has nominated three candidates as his successor
According to the Zhitong Finance APP, on the eve of the Federal Reserve's upcoming key meeting (where the market widely expects its officials to implement the first policy easing in nine months), U.S. President Trump predicted that the Federal Reserve will take "significant interest rate cuts" this week.
"I think there will be a significant rate cut," Trump told reporters on his way back to Washington on Sunday, "Now is the best time to cut rates."
Due to a slowing labor market, persistent inflation, and Trump's unprecedented pressure to lower borrowing costs, the market generally expects the Federal Reserve to announce a rate cut on September 17. The median forecast among economists is a 25 basis point cut.
For months, Trump has been pressuring Federal Reserve Chairman Jerome Powell to push for rate cuts and has publicly urged Powell to resign multiple times.
Recent releases of several weak economic reports have raised concerns that the labor market may be entering a deeper slowdown, which could threaten consumer spending and economic growth. Meanwhile, the current inflation rate remains above the Federal Reserve's target of 2%; if tariff policies drive up the cost of goods, inflation could rise further, leading some Federal Reserve officials to be cautious about "taking policy action too quickly."
Powell's term as Federal Reserve Chairman will end in May 2026, and Trump is currently working to finalize his successor. Trump has publicly nominated three main candidates: White House economic advisor Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Federal Reserve Governor Kevin Warsh
