Upward pressure on the US economy: Trump again urged the Fed to cut interest rates

On April 4, local time, US President Trump posted on social media that now is the perfect time for Federal Reserve Chairman Powell to cut interest rates. Since Trump was re-elected president of the United States, this is the third time that he urged the Federal Reserve to cut interest rates, Trump urged the Federal Reserve to cut interest rates highlighted the great pressure on the US economy, which also triggered a series of market reactions, and had a huge impact on global investor confidence.

From the US economic data, the March non-farm data showed that the number of US unemployment increased from 1.75 million in February to 1.81 million, and the unemployment rate rose to 4.2%, a new high since the end of 2021. For a long time, the US non-farm data is regarded as one of the important indicators of the health of the US economy, the rise in the number of unemployed and the rise in the unemployment rate means the pessimistic outlook of the US economy, which is one of the reasons why Trump urged the Federal Reserve to cut interest rates.

From the economic level, interest rate reduction is a direct means to regulate the national economy. As a monetary policy, interest rate cuts can increase the money supply in the market, thereby promoting the amount of money in circulation in the market and promoting economic growth. Based on this economic principle, Trump urged the Federal Reserve to cut interest rates, on the one hand, showing Trump's concerns about economic growth, on the other hand, also reflects the current situation of the US economy under pressure.

In the global economy, the US GDP accounts for more than 25% of the world's total economy, the US economic outlook can often trigger a wider economic chain reaction, Trump urged the Federal Reserve to cut interest rates, not only highlights the uncertainty of the US economic outlook, from an international perspective, may also affect the upward ability of the global economy.

Trump's push for the Fed to cut interest rates is also closely linked to his tariff policy. Since Trump took office, he has continued to wield the "tariff stick", the Trump administration first announced a 25% tariff policy on imported cars, followed by a 25% tariff on imported steel and aluminum, and the implementation of "reciprocal tariffs" on 186 countries and regions around the world. A series of tariff measures, while restricting the global economy and trade, also have an adverse effect on the US economy. On the one hand, the imposition of import tariffs has increased the operating costs of domestic enterprises in the United States, which has reduced the profit margin of enterprises, thus promoting the slowdown of the US economic growth trend. On the other hand, the imposition of tariffs has triggered a number of countries to formulate corresponding measures, so that the American people have to bear the "tax increase price transfer", which causes prices to rise, so that consumption can not be further released, resulting in difficult to improve the level of economic growth in the United States.

Pressure from the securities market is another important reason for Trump to urge the Fed to cut interest rates. Since the new President Trump, his series of economic measures have aggravated the volatility of the global economic market, and the securities market represented by the United States has assumed multiple pressures. Since January 20, the three major stock indexes in the United States first experienced high volatility, and then collectively fell sharply since February, the stock market as a barometer of the economy, on the one hand reflects investors' market confidence, on the other hand, is also the current and future period of economic direction of the indicator. Interest rate cuts can promote the amount of money in the market, thereby amplifying people's investment activities in the securities market, so Trump has repeatedly urged the Federal Reserve to cut interest rates, which is a more important factor.

Taken together, Trump urged the Federal Reserve to cut interest rates, reflecting the enormous pressure on US economic growth, and further affecting the global investment market. In this complex environment, policy makers should pay close attention to the monetary and fiscal policies of major banks and governments in the world, follow up the changes in the international situation in time, and formulate relevant policies that meet the needs of their own economic development according to the actual situation of their own countries, so as to balance fiscal policies and monetary policies against the complex international economic background. Thus, it will promote the healthier development of the domestic economy and help the global economy grow steadily for a longer time.