US President Donald Trump has said he wants the Federal Reserve to cut interest rates at a time when the central bank has paused indefinitely, saying he understands monetary policy better than those who determine it. This was reported by Reuters, according to UNN.
Details
"Given the decline in oil prices, I will demand an immediate reduction in interest rates, and similarly, they should be reduced around the world," Trump said at the World Economic Forum in Davos on Thursday.
"I think I know interest rates a lot better than they do, and I think I know them a lot better than the person who is primarily responsible for making that decision," Trump said later at the White House.
According to media reports, the US president was apparently referring to Federal Reserve Chairman Jerome Powell, whom Trump appointed as head of the Fed in his first term as president.
Trump's comments came on the eve of the Fed's first monetary policy meeting of his second term, scheduled for January 28-29. Officials are expected to keep rates at the level of 4.25-4.5% set at the December meeting.
For the entirety of 2024, the Fed cut rates by a full percentage point amid easing inflationary pressures and a sense among Fed officials that they want monetary policy to have less of a dampening effect on economic dynamics. At the December meeting, officials trimmed their estimates for a cut in 2025 amid expectations of higher inflation and slightly better growth.
Trump's statements on monetary policy are atypical for heads of state, as they contradict the agency's intention to set interest rate policy independently, the publication notes.
Recall
The Trump administration intends to terminate funding for the Pentagon's Center of Excellence for Civil Defense. The decision to close the office, which was established in 2023, requires congressional approval.
