US President Trump expects that the US Federal Reserve will implement a significant interest rate cut this week.
Bloomberg reported that the Federal Reserve Board is about to hold a crucial meeting and is expected to make the first interest rate cut this year. Trump told the media in Washington on Sunday (September 14th) : "I think there will be a significant interest rate cut." Now is the perfect time to cut interest rates.
The Federal Reserve is scheduled to hold a meeting on Wednesday (the 17th). Given the slowdown in the US labor market, stubborn inflation and the pressure from Trump's interest rate cuts, the market generally predicts that the Federal Reserve will decide to cut interest rates.
A Bloomberg survey of economists shows that the median market expectation for interest rate cuts is 25 basis points.
Trump has repeatedly pressured Federal Reserve Chair Powell to cut interest rates and has also repeatedly asked him to resign.
Powell's term will expire in May 2026, and Trump is looking for a successor. The three major candidates are Hassett, director of the National Economic Council, Waller, a member of the Federal Reserve Board, and former Federal Reserve Board member Walsh.
In early December, US stocks staged their most dramatic intraday reversal in months. Driven by the dual positive catalysts of chip giant NVIDIA's better-than-expected earnings report and a "Goldilocks" nonfarm payrolls report, the S&P 500 index surged as much as 1.9% within the first hour of trading.
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