Trump blasts Fed for not cutting interest rates

Published On Jan 29, 2025, 4:32 PM

President Trump criticized the Federal Reserve and its chair, Jerome Powell, for maintaining interest rates instead of reducing them as he had suggested. He attributed high inflation to the Fed's policies and vowed to address the issue through increased energy production, regulatory cuts, and a focus on manufacturing. The Fed's decision not to cut rates leaves them steady at 4.25% to 4.5%, following a series of recent cuts amid economic uncertainties.

Stock Forecasts

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Positive

Given Trump's critical rhetoric toward the Fed and his push for lower interest rates, if economic conditions lead the Fed to reconsider rate cuts in the future, it could benefit sectors like utilities and real estate that thrive in lower interest rate environments.

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If Trump's suggestions for increased energy production materialize, it may positively impact energy stocks such as ExxonMobil, particularly if inflation continues to be a concern that leads to wider market volatility.

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