This is a theory from several Economists: If the market drops sharply, it could create panic and pressure the Federal Reserve to act by cutting rates. Trump has historically criticized the Fed for keeping rates too high, and as a businessman, he understands the impact of lower borrowing costs. The U.S. is sitting on trillions in debt. A 0.5% rate reduction could save hundreds of billions in interest payments over time. Given Trump’s focus on fiscal policies that benefit business and government spending, this could be a strategic move. Short term pain for long term prosper.
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u/Odd_Calligrapher4612 19d ago
This is a theory from several Economists: If the market drops sharply, it could create panic and pressure the Federal Reserve to act by cutting rates. Trump has historically criticized the Fed for keeping rates too high, and as a businessman, he understands the impact of lower borrowing costs. The U.S. is sitting on trillions in debt. A 0.5% rate reduction could save hundreds of billions in interest payments over time. Given Trump’s focus on fiscal policies that benefit business and government spending, this could be a strategic move. Short term pain for long term prosper.