Why an aggressive rate cut could backfir...

The Federal Reserve is expected to make a modest cut to interest rates this week of about a quarter or half a percentage point. President Trump, however, believes they should take a far more aggressive approach: a 3-percentage point cut. 

Today on the show, we examine what a 3-percentage point cut would actually look like, and why that outcome would likely backfire on the president. 

Related episodes: 
It's hard out there for a Fed chair 
Should presidents have more of a say in interest rates? 
Can the Federal Reserve stay independent? 

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.  

See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.

NPR Privacy Policy