Trump presses a serious reduction of the interest rate, and the likely Fed’s next traffic is short

The federal reserve is expected to lower the key interest rate on Wednesday, but the reduction is a fraction of the reduction, which President Donald Trump asked for.

President Donald Trump on Monday Renewed demands for the central bank to limit Fed Funds Stepcja much. The influential central bank interest rate dictates the costs of the loan at which banks borrow money, affecting interest rates on all kinds of loans.

Fed he kept interest rates High enough to limit the economy throughout the year, because Trump’s tariffs fuel inflation. Trump needed the Fed to the lower rates, destroying Fed Chairman Jerome Powell “too late” for his cautious approach. In the social media post on Monday morning, Trump said that the reductions of the rates that Fed officials are considering are not suddenly sufficient.

“” Too late “must now lower interest rates and larger than he meant,” wrote Trump.

Fed indeed The interest rates seem to reduce interest ratesBut not almost as much as Trump required many times.

Financial markets value 96% of the chances that the Federal Open Market Committee will reduce the FED fund by a quarter point when it is next on Wednesday, according to the CME Group Fedwatch tool. The tool forecasts movements based on the commercial data Fed Funds Fures.

But Trump is in favor of a much larger cut. In July, Trump said that the FED fund rate was “at least” by three percentage points too high.

Trump forced the FED to lower rates, arguing that it would reduce interest that the government pays on domestic debt and reduce the mortgage rate. However, some experts say Quick rate reductions can go back.

In addition to demanding cuts, Trump took steps Take control of the central bankwhich is independent of direct control over the White House.