Trump Pressures US Fed: "Will Demand Immediate Interest Rate Cut"

Trump Delivers Virtual Speech at Davos
"Interest Rates Should Be Lowered Globally"

U.S. President Donald Trump has expressed his intention to demand an immediate interest rate cut from the Federal Reserve (Fed). This move comes just one week before the Fed's upcoming decision on the benchmark interest rate, with President Trump publicly applying pressure for a rate reduction.

On the 23rd (local time), during a virtual speech at the World Economic Forum (WEF, Davos Forum) held in Davos, Switzerland, President Trump stated, "I will demand an immediate rate cut," adding, "Interest rates should come down globally, and rates should follow us."

This statement marks President Trump's first message regarding interest rates since taking office. Although he did not explicitly mention the Fed, he has begun to pressure the Fed for monetary easing as previously indicated. Since his candidacy, Trump has criticized the Fed's high interest rate policy and pledged to fire Fed Chair Jerome Powell if he won the presidential election.

However, the Fed recently announced it would slow the pace of rate cuts due to a robust economy and concerns over a rebound in inflation. President Trump's tariff increases, restrictions on illegal immigration, and tax cut policies are expected to drive prices higher. The U.S. benchmark interest rate has fallen by 1 percentage point from a peak of 5.25?5.5% to the current 4.25?4.5%, following the Fed's end to 30 months of monetary tightening and the start of rate cuts in September last year.

The Fed will hold the Federal Open Market Committee (FOMC) meeting on the 28th?29th to decide on the benchmark interest rate. This will be the first FOMC meeting of the year and the first since President Trump took office. With President Trump demanding an immediate rate cut before next week's FOMC meeting, controversy over the Fed's independence in conducting monetary policy is expected to intensify.