Trump's proposal to lower the Federal Reserve's interest rate to 1% raises doubts among economists

ChainCatcher news, according to Jinshi reports, U.S. President Trump recently suggested that the Federal Reserve lower the benchmark interest rate to 1% to reduce government borrowing costs. Economists point out that in the current economic environment of a 4.1% unemployment rate and a 2.5% inflation rate in the U.S., such a significant rate cut could potentially raise inflation again and undermine the independence of Federal Reserve policy. Historical data shows that a 1% interest rate typically occurs during economic crises, such as the 2008 financial crisis and the 2020 pandemic.

Analysis indicates that the "Too Big to Fail Act" passed by the Trump administration is expected to expand the fiscal deficit, and if combined with aggressive rate cuts, it could exacerbate market concerns about inflation. Federal Reserve officials emphasize that there are risks associated with significant rate cuts until the impact of the new tariff policy on inflation becomes clear.