Why Trump opposes rate cuts before U.S. presidential election

✅ Why Trump opposes rate cuts before U.S. presidential election

1. Trump's stance against interest rate cuts
- Former President Trump Claims Fed Should Not Cut Rates Before U.S. Presidential Election In Bloomberg Business Week Interview
- Fed may try to cut interest rates before Nov. 5 election
- This is contrary to what he has consistently called for during his time in office in the past
- Claims that price stability is possible by reducing energy costs

2. Fed's September rate cut likely and background
- Fed Chair Jerome Powell hints at September rate cut at congressional hearing and economic club event
- Express confidence that inflation is slowing to 2% target level based on favorable economic data in Q2
- Evaluate current tightening levels to be effective in bringing inflation down below 2%
- suggesting that waiting up to 2% is waiting too long

3. Analysis of Trump's Opposition to Interest Rate Cuts
- Interpreted as a political calculation to broaden policy operations after taking office
- Concerns over further easing due to pre-election rate cuts
- If stock market gains from rate cuts materialize before election, further upward momentum is likely to shrink
- Intent to offset economic burden from tariff hikes and anti-immigrant policies with Fed post-election rate cuts
- a strategy to obscure whereabouts in the event of a resurgence in inflation

4. Suspicion and Republican reaction to political considerations
- Suspicion arises that Powell's September rate cut is aimed at creating an economic environment favorable to Biden
- Analysts say that even for a short period of time, it could create a favorable situation for Biden by creating an economic expansion phase
- Republicans express opposition to possible September rate cuts from earlier this year
- Rep. Patrick McKenley questions political neutrality of September rate cuts

5. Future Economic Policy and Relationship with the Fed
- It is interpreted as an intention to secure the capacity to raise interest rates in preparation for a recurrence of inflation after Trump took office
- Experts Warn That Higher Tariffs And Anti-Migrant Policies Could Cause Inflation, Worsening Employment
- Trump says he won't be involved until the end of his 2028 term on the premise that Powell follows his will
- Concerns exist that Trump could retaliate against Powell if interest rate cuts materialize in September

🗣Will ️ Biden somehow try to play a rate cut card during his term, and won't Trump try to put it off?

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