Trump Wants Lower Rates—but Inflation Is the Obstacle

[cryptoenthusiast]

President Donald Trump has been vocal about wanting lower interest rates, and markets are betting that political pressure will eventually force the Fed’s hand. With the Fed chair’s term ending in 2026, investors expect a more dovish successor, reinforcing expectations of easier policy ahead.

Yet inflation complicates everything. Rising living costs are eroding public confidence in Trump’s economic leadership, weakening the very political leverage needed to influence monetary policy. The paradox is stark: the conditions that make rate cuts politically appealing also make them economically risky—or leave Trump too weakened to demand them. In the end, inflation and jobs data, not political pressure, will decide both rate cuts and electoral fortunes.

[madmax]

everyone talking politics but at the end of the day the fed only listens to the data, not tweets