BiggerPockets Daily Trump Urges Federal Reserve to Cut Rates By 1%
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Jun 9, 2025 Trump's call for a dramatic 1% rate cut from the Federal Reserve stirs the economic pot, sparking debate over potential leadership changes at the Fed. The podcast dives into the economic consequences of this push, especially regarding employment and inflation. Additionally, new data reveals younger buyers are hesitating in the housing market due to high borrowing costs, waiting for more favorable conditions. This tension between political demands and market realities offers a fascinating look at current economic pressures.
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Trump's Unprecedented Fed Pressure
- President Trump is pressuring the Federal Reserve to cut interest rates by a full percentage point rapidly.
- Such a dramatic cut last occurred in March 2020 during the pandemic economic crisis, suggesting this could cause market chaos.
Fed's Delicate Balancing Act
- The Fed's dual mandate balances maximizing employment and keeping prices stable.
- Cutting rates too much risks destabilizing inflation even if jobs improve.
Economists See Rate Stability Ahead
- Many economists believe the market is not ready for a rate cut due to sticky inflation and a strong labor market.
- This supports expectations that the Fed will maintain current interest rates for now.