$MOVE
Is 25 basis points not enough to fill the gaps? Trump angrily criticizes the Fed's interest rate cut behind three calculations
The Federal Reserve's third interest rate cut of the year by 25 basis points was expected by the market, but Trump exploded directly: "This cut could have been doubled!" Clearly a loose monetary policy, why is this president still not on board? The core issue is that the rate cut did not align with his economic ambitions and political demands.
Trump's goal has never been small; he openly states that U.S. interest rates should be the lowest in the world, and the 3.5%—3.75% rate range is far from this target, with a 25 basis point cut being unable to quickly stimulate the economy. More critically, the high level of U.S. government debt means this small cut hardly saves on debt interest, failing to meet his demand for reducing fiscal pressure.
There are deeper political considerations at play: the tariff policies he has implemented have pushed up inflation, necessitating a significant rate cut to counteract the negative impact. At the same time, he has long been displeased with Powell's rigid approach, and this dissatisfaction provides an opportunity to pave the way for changing the leadership of the Federal Reserve. After all, he is assessing candidates for the next head of the Fed based on their willingness to cut rates immediately. It is worth noting that there are also divisions within the Fed, with some members advocating for a direct cut of 50 basis points.
Will this interest rate cut game affect global liquidity? Is it a positive outcome for the crypto market or an insufficient expectation? Do you think Trump can ultimately force the Fed to make a significant rate cut?