Wednesday, December 10, 2025

Trump wants his Fed chair to cut rates. The economy may have other ideas.

 With a Fed decision coming today, Trump has consistently insisted on another cut and has done so by criticizing Powell. This comes as a growing debate over political interference into the Federal Reserve and its decisions. 

Fed policymakers are divided over the best path forward - some warn that more and more rate cuts will come with a sharp rise in inflation rather than stabilize the economy. Some believe it is the right path forward and that the economy is stable and ready to handle another cut.

https://www.politico.com/news/2025/12/10/trump-wants-his-fed-chair-to-cut-rates-the-economy-may-have-other-ideas-00684205

1 comment:

Zane Vitense said...

The complexity of the situation for the Federal Reserve is shown in this post. Trump is still publicly advocating for another rate cut, but Fed officials disagree on whether the economy can sustain one at this time. While some anticipate further rate easing, others are concerned about rising inflation. With so much uncertainty, it clearly demonstrates that making the right decision requires relying on reliable economic data rather than political pressure.