I dont think even if trump was to crown himself the fed chair would we get rates that low.
Trump loves using the stock market as the barometer of the economy and while wall street loves rate cuts they would spot a cut all the way down to 2.5 as a sign of either sever desperation or getting extremely drunk at the punch bowl.
Meanwhile there is point at which going to far with rate cuts runs counter to Bessent's goal at bringing down long term rates. If bond investors fear that inflation will really run up that high they will demand higher yields on long term debt.
I think Trumps part of the reason Trump attacks Powell is to use him as a scapegoat for the recession we are likely going into if not in already.
I dont think even if trump was to crown himself the fed chair would we get rates that low.
Trump loves using the stock market as the barometer of the economy and while wall street loves rate cuts they would spot a cut all the way down to 2.5 as a sign of either sever desperation or getting extremely drunk at the punch bowl.
Meanwhile there is point at which going to far with rate cuts runs counter to Bessent's goal at bringing down long term rates. If bond investors fear that inflation will really run up that high they will demand higher yields on long term debt.
I think Trumps part of the reason Trump attacks Powell is to use him as a scapegoat for the recession we are likely going into if not in already.