President Donald Trump renewed demands for the Federal Reserve to cut interest rates “right now,” calling for a special meeting and accusing Chair Jerome Powell of harming national security by maintaining high rates.
Trump argues lower rates would ease the burden of the $39 trillion national debt and boost housing, equities, and economic growth. Cheaper borrowing typically fuels investment in risk assets like stocks and crypto.
The Fed’s March meeting is widely expected to hold rates steady at 3.50%-3.75%. Market pricing shows a 99% chance of no change this week and a 97% likelihood of no move in April.
Powell’s term ends in mid-May, with Trump’s pick Kevin Warsh poised to take over-a shift some believe could tilt policy toward cuts. But escalating US-Iran tensions have spiked oil prices, threatening to reignite inflation just as February’s CPI held at 2.4%.
Analysts say the Fed will likely wait out the uncertainty, with traders pricing in no rate cuts for all of 2024.