#FedRateCutComing

The US Federal Reserve is entering a critical period as markets and policymakers anticipate further interest rate cuts. Recent statements by President Donald Trump have intensified expectations of significant monetary easing, potentially bringing rates to historically low levels below 1%.

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🔹 Trump Signals Aggressive Rate Cuts
In a recent interview, Trump emphasized that lower interest rates are crucial for the US economy. He argued that ultra-low rates would:

Reduce the cost of servicing the $30 trillion national debt

Encourage business investment and consumer spending

Enhance the global competitiveness of the US economy

Provide support to key sectors including technology, infrastructure, and finance

Trump also suggested that the next FED Chair should consult with the White House on rate decisions. He clarified that while the FED should remain independent, the President’s input should be considered, noting that this was common practice in the past.

> “We need to have the lowest interest rates in the world,” Trump said. “It will help everyone — businesses, workers, and the economy overall.”

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🔹 Leadership at the FED: The Two Kevins

Trump is reportedly weighing two primary candidates for the next FED Chair:

Kevin Warsh – Former FED Governor (2006–2011), Wall Street veteran, economic adviser during the George W. Bush administration. Warsh is recognized for his experience in monetary policy and financial markets.

Kevin Hassett – Director of the National Economic Council, former senior economic adviser to Trump (2017–2019), returned briefly during the COVID-19 pandemic, and a key economic strategist. Hassett holds a PhD in economics and is considered a strong advocate for lower interest rates.

Trump confirmed that both candidates support reducing interest rates, signaling a potential shift toward a more accommodative monetary policy if either is appointed. He also highlighted that no final decision has been made yet, reflecting his desire to avoid repeating mistakes from his past appointment of Jerome Powell in 2017.

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🔹 Recent FED Actions and Market Implications

This week, the FED cut its policy rate by 25 basis points, setting the target range at 3.5%–3.75%. The decision highlighted growing internal disagreement within the FED:

Two officials opposed the rate cut entirely

Some pushed for a 50 basis point cut

This split indicates that the FED is weighing caution versus aggressive monetary support, but Trump’s preference for lower rates may influence future decisions.

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🔹 Potential Market Effects

If the FED continues cutting rates aggressively, the following effects could occur across global markets:

Lower borrowing costs for consumers, businesses, and governments

Increased market liquidity, supporting equity markets and risk assets

Downward pressure on the US dollar, impacting global trade and commodity prices

Potential gains in cryptocurrencies, including $BTC, $ETH, $SOL, and $DOGE, as investors search for higher returns

Investors and analysts are now closely watching upcoming FED meetings, comments from the new Chair candidates, and any signs of further monetary easing. The next few months could bring significant market volatility and opportunities for investors prepared for a low-rate environment.