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Trump demands urgent interest rate cuts


January, 24 2025
watermark Economic news

President Donald Trump has announced his intention to lower interest rates in the United States. In his video speech at the World Economic Forum in Davos, he did not mention the Federal Reserve directly, but made it clear that lowering interest rates was his priority. 


Trump stressed the need for immediate action and added that other countries should take similar measures. These statements were a clear signal of pressure on the Fed, with which Trump has a difficult relationship. He has repeatedly criticized Fed Chairman Jerome Powell, despite the fact that he appointed him. 


The markets reacted positively: the Dow Jones industrial average accelerated growth, the yield on 2-year Treasury bonds declined, and the dollar weakened, reaching 107.56 in morning trading. 


Later, Trump expressed confidence that his call would be heard and announced plans to discuss the issue with Powell. However, the head of the Federal Reserve emphasized the independence of the organization, saying that decisions are made without taking into account political factors. Despite the president's right to appoint members of the board of governors, he cannot directly influence the Fed's policy.


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