According to ChainCatcher, citing Jinshi News, US President Trump recently suggested that the Federal Reserve lower the benchmark interest rate to 1% to reduce government borrowing costs. Economists point out that under the current economic environment with a 4.1% unemployment rate and 2.5% inflation rate, such a significant rate cut could potentially reignite inflation and undermine the Federal Reserve's policy independence. Historical data shows that 1% interest rates typically occur during economic crises, such as the 2008 financial crisis and the 2020 pandemic.
Analysis indicates that the "big and beautiful bill" passed by the Trump administration is expected to expand the fiscal deficit, and if combined with aggressive rate cuts, it could intensify market concerns about inflation. Federal Reserve officials emphasize that significant rate cuts carry risks before the impact of new tariff policies on inflation becomes clear.
