What Trump Has Said About Interest Rates, and Why It Matters

Published On Sep 18, 2024, 12:15 PM

Former President Donald Trump has made comments suggesting that if he returns to office, he would push for lower interest rates. While traditionally, the Federal Reserve operates independently of political influence, Trump's remarks hint at a belief that the Fed should respond to political pressures, especially as it approaches a potential rate cut—the first in over four years. Trump argues that economic conditions warrant lowering rates, while noting that such decisions could be seen as politically motivated, especially in an election year. His opponent, Vice President Kamala Harris, avoids discussing the Fed, while President Biden has hinted that he expects interest rates to decrease.