Part 9/13:
Trump’s call for a rate cut by three percentage points aligns with the reality of low inflation readings. Inflation remains well below the levels many feared, and forecasts by the Federal Reserve have consistently overstated inflationary pressures. Economists point out that the Fed’s projections have been inaccurate month after month, calling into question their rationale for maintaining high interest rates.
The current environment suggests that the Federal Reserve’s stance is out of step with market realities, possibly motivated by political factors or a misguided focus on tightening monetary policy as a precaution. Some analysts argue that delaying rate cuts hampers economic growth, particularly in sensitive sectors like housing, where buyers and sellers remain cautious amid uncertainty.