Trump urges Federal Reserve to slash benchmark rate to 1%, raising alarms
On July 14, 2025, President Trump stepped up pressure on the Federal Reserve, calling for a sharp reduction of its benchmark interest rate to 1%—a move analysts say would typically signal an economic crisis .
Critics warn that such a policy could reignite inflation and inflate government borrowing costs, undermining the Fed’s long-held independence.
Trump argues the cut would help finance his large new spending and tax-cut agenda, but opponents fear it may destabilize the economy while eroding confidence in monetary policy.
As the debate unfolds, markets and policy wonks will closely monitor inflation data and the Fed’s response to this high-stakes showdown.
Adedayo Obadina
Talksocialtalks
