The Federal Reserve is expected to deliver surprise cuts to U.S. interest rates, exceeding market expectations by at least one-half percentage point per month through December 2019. This move comes as President Donald Trump has hinted at pushing for more aggressive rate reductions in the past, though he has not personally signed off on the proposed levels.
The Fed’s decision follows weeks of speculation about whether Trump would support such deep cuts to combat economic headwinds, including inflation and slowing growth. Some within Trump’s administration have criticized the central bank for maintaining higher rates, raising concerns that the approach may be insufficient to address underlying economic challenges.
This move underscores the delicate balance between managing the economy and navigating political pressures, as the Fed seeks to maintain confidence while addressing key macroeconomic issues.
Source: https://www.ft.com/content/692aba10-5e1c-43ea-801a-e1d697aaef42