Should the Fed Cut Rates? The Trump Debate

From Investing.com: 2025-05-19 08:35:00

The US Federal Reserve has decided to keep interest rates at 4.5%, signaling a cautious approach to managing the economy. While the Fed aims to control inflation, former President Donald Trump is pushing for rate cuts to boost economic activity. The debate continues: should rates be lowered to stimulate growth, or is the current rate the best option for long-term stability? Fed officials are concerned about slowing growth and rising unemployment, while Trump believes lower rates will support business investment and consumer spending. The market is closely watching for any signs of a Fed rate cut, with traders betting on potential changes in September and October.



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