Trump says he will 'demand' interest rates drop, hinting at coming clash with Powell
Published On Jan 23, 2025, 12:55 PM
Donald Trump, speaking at the World Economic Forum, stated his intention to 'demand' lower interest rates, disputing the current stance of Federal Reserve Chair Jerome Powell. He claimed that rates should decline, especially with falling oil prices. This insinuates a potential policy clash as the Fed recently lowered rates but indicated that significant cuts may not continue. Trump's comments suggest he might push for more accommodative monetary policy despite Powell's signals otherwise, leading to uncertainty in the market.
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Potential shifts in interest rate policy could influence markets significantly, potentially favoring sectors sensitive to interest rates such as financials and real estate, which thrive on lower rates. However, ongoing tensions could create volatility and uncertainty in broader market conditions, putting pressure on rate-sensitive stocks.
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