Is the U.S. FRB rate cut again? Donald Trump is aiming to reduce interest rates by increasing energy production. Expert opinions are as follows

U.S. President Donald Trump said on Thursday that it would aim to decline interest rates by releasing energy production, and will discuss with the Federal Reserve as needed.

He said in a virtual speech at the World Economic Forum in Davos, Switzerland, “Requires an immediate reduction of interest rates.” “Similarly, they should decrease around the world. Interest rates should follow us.”

The US Federal Reserve has a double mission of acting independently to reduce inflation and employment by increasing the level of short -term interest rates.

As a US President, Trump did not speak the interest rate decision, and Trump has frequently criticized this fact.

President Trump said to the reporters in Washington late Thursday that interest rates would be reduced significantly, and that the decline in crude oil prices would help to reduce interest rates.

He said, “If the price of crude oil drops, the price will drop. Inflation will not occur and interest rates will decrease,” he said.

In response to the question of what to do if the Fed does not fall, President Trump said, “I will give a strong statement,” and hopes that the authorities will listen to their opinions, and if necessary, dialogue with Powell FRB. I added it to consider.

“I think I know the interest rate better than them,” he said. “And I think I know much better than the main responsible person who makes that decision. I’m very guided by them,” he added. “But if I don’t agree, I’ll let you know.”

President Trump’s remarks were held five days before the first policy meeting under the Fed’s administration on January 28 and 29 on the backdrop of the very wide expectation that the officials would leave interest rates.

The Fed was reduced by 0.5 points to 4.25 to 4.5 % of the next day’s interest rate at a policy meeting last December.

With the growing awareness of relieving inflation pressure and the growing awareness of monetary policy to reduce economic momentum due to monetary policy, the Fed has reduced interest rates by 1 % through 2024. In the December meeting, the officials revised the prospect of reduction in 2025, with an increase in inflation levels and some improvements in growth.

Mr. Trump’s comment on the Fed interest rate policy is extremely unusual for a modern president and contradicts the Fed design of setting an interest rate policy on its own. The Fed does not need to follow the President’s instructions, but does not respond to comment requests.

The global financial advisor Devia Group has a strict warning to prepare for investors in preparing for a major confusion because the US Federal Reserve may have a conflict with the financial impact of President Trump’s financial policy. Is issued.

The increased inflation pressure is likely to appear again, and the potential response of the U.S. Federal Reserve (Fed) may suggest crustal deformation in the financial market.

According to experts, President Trump has further strengthened its ambitious fiscal stimuli, tax reduction, and expanded tariffs systems. These measures are aimed at stimulating economic growth, but are still concerned about strong inflation pressure.

This potential battle is unprecedented. It has been well documented to collide with the Federal Reserve (Fed) in Trump’s former presidential era over monetary policy.

It is highly likely that the front is already drawn between the Fed and the White House, and investors need to prepare for the aftermath, “he warns Niger Green. 。

“President Trump’s policy causes a storm of perfect inflation pressure, and the Fed may be forced to act, which can cause a major fluctuation in the market.”

Many Fed officials, including Powell, have already stated that they need to be more careful about further lowering due to inflation slumps. Several policy officials were striving to take into account the potential of President Trump in new predictions announced at the December policy meeting. If the inflation rate is still higher than the 2 % of the Fed’s goal, the price of the Fed may worsen the price pressure rather than improving.

In a lecture last week, New York Bank Governor John Williams pointed out that it was particularly difficult to show guidelines on the outlook for monetary policy due to the uncertainty about government policy actions.

“The economic outlook is still very uncertain, especially over the potential of finances, trade, immigration, and regulatory policies,” said Williams, “said Williams. Our decisions will continue to be made based on data comprehensive and policy development. ” This is the risk of achieving economic outlook and our double responsibilities. “

“The economic outlook is still very uncertain, especially over the potential of finances, trade, immigration, and regulatory policies,” said Williams, “said Williams. Our decisions will continue to be made based on data comprehensive and policy development. ” This is the risk of achieving economic outlook and our double responsibilities. “