President Donald Trump again urged the Federal Reserve to slash interest rates immediately, asking officials at a White House meeting to call a “special meeting” to lower borrowing costs. “What’s a better time to cut interest rates than now? A third-grade student would know that,” he said in remarks captured on video and shared on X.
Trump reiterated the demand on Truth Social, saying the Fed chair “should be dropping interest rates, IMMEDIATELY.” He has pushed for “substantially lower” rates — even calling for the lowest rates in the world — and criticized current Chair Jerome Powell as “too late.” Trump argues that high rates are “hurting our country, and its National Security,” and that lower rates would reduce the cost of servicing the roughly $39 trillion national debt while supporting growth, housing and the stock market.
Lower interest rates also tend to make borrowing cheaper and increase market liquidity, which can push investors toward higher-risk assets such as stocks and cryptocurrencies.
The Federal Reserve begins a two-day policy meeting on Tuesday and will announce its decision on Wednesday. Market tools such as CME Group’s FedWatch show about a 99% probability the policy rate will remain unchanged at 3.50%–3.75% this week, and roughly a 97% chance of no change at the April 29 meeting.
Those probabilities persist even as Trump’s Fed chair nominee, Kevin Warsh — who would take the post in mid-May if confirmed — is viewed by some as potentially more open to cutting rates than Powell.
The outlook is complicated by rising oil prices tied to the conflict with Iran. Higher fuel costs raise transport and production expenses, which can feed into broader price increases and put upward pressure on inflation, potentially prompting the Fed to keep rates higher or even raise them.
US inflation was steady at 2.4% in February, and some forecasts expect it to rise in March. With oil-driven risks elevated, many traders have already priced in the likelihood of zero rate cuts this year, reducing the chance of downward pressure on crypto asset prices, said Jeff Mei, chief operating officer at exchange BTSE. He added that oil’s ultimate effect on inflation remains uncertain and that the Fed is likely to “wait out the situation.”
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