- President Trump stated he has "not much" doubt that the Federal Reserve will eventually lower interest rates, continuing his public pressure on the central bank.
- The Federal Reserve resisted this pressure in its January 2026 meeting, choosing to leave the benchmark federal funds rate unchanged at a range of 3.5% to 3.75%.
- Trump has repeatedly called for rates to be cut, claiming the Fed's current policy is costing the US economy "hundreds of billions of dollars."
- Experts warn that lowering rates more than economic conditions warrant could lead to a short-term "sugar high" followed by higher inflation and potentially even higher rates later on.
- The Fed's most recent projections, released in December 2025, showed a more cautious path for rate cuts, with the median view placing the federal funds rate in the low-to-mid 3% range by the end of 2026.
Trump expresses confidence that interest rates will be lowered despite Federal Reserve resistance
Feb 4, 2026, 7:08:33 PM UTC(4 hours ago)
Impact: Medium
Affected Assets
Sources
From:@DeItaone
TRUMP SAYS "NOT MUCH" DOUBT THAT INTEREST RATES WILL BE LOWERED
