Donald Trump vs Federal Reserve: Why a 1% Fed rate cut could backfire, fuel inflation, and rattle markets — here’s what economists say

Donald Trump’s call for the Federal Reserve to slash interest rates to 1% to ease government borrowing costs faces strong opposition. Economists warn this drastic cut risks inflaming inflation expectations, undermining the Fed’s credibility, and triggering a bond market backlash. Concerns rise over potential political interference and the erosion of trust in the Fed’s independence.