U.S. President Trump Calls for 1% Interest Rate Amidst Rising Economic Growth

President Donald Trump continues his aggressive monetary easing campaign by urging the Federal Reserve to cut interest rates to 1%. Speaking at the Kennedy Center, he stated that the U.S. should be "lower by three or four points" and revealed that he is narrowing down "three or four" candidates for the next Fed Chair.

The President of the United States made these remarks as pressure on current Chairman Jerome Powell, who will complete his term in May 2026, is increasing. Trump Pressures Fed to Strongly Cut Interest Rates and Appoint New Leadership Trump believes that the U.S. economy needs to grow faster and fall borrowing costs, as each basis point of interest rates costs the government $360 billion a year. He lamented Powell's move to maintain interest rates amid data on tariffs and inflation, stating that the situation of insufficient mortgage repayment ability is increasingly escalating during his term. The president has called for a reduction in interest rates, currently averaging 4.33%, to around 1%, which he believes will increase investment and reduce debt repayment costs. He once again called Powell "Too Late" and said that he missed the opportunity to lead on interest rate policy. Christopher Waller and Michelle Bowman, two Fed governors, have supported a modest rate cut, voting against the level of cut at the previous meeting. Trump welcomed their stance but called for stronger action, considering it necessary to maintain the United States' leading economic position. Policy disputes are escalating as the Fed faces pressure from both internal and external sources. The administration has considered the possibility of Powell being fired due to overspending in the $2.5 billion Fed construction project. Trump criticized the costs of the project, such as the construction of the basement below the headquarters, which he deemed extremely incompetent. He stated that Powell should resign after Governor Adriana Kugler announced her resignation. Previously, the Supreme Court ruled that Powell could not be removed solely due to policy differences and the president's term would be limited until 2026. But the President of the United States has hinted that he may announce his choice for the Fed Chair sooner than expected, adding that all candidates under consideration are "great." Although the President of the United States describes the economy as booming, he still asserts that significant cuts are needed to maintain the growth momentum. He warned that if no measures are taken, high mortgage rates will continue to limit American families' access to affordable housing. Market Performance Shows the Strength of Bitcoin and Ethereum The market remains resilient, with major cryptocurrencies reporting gains as Trump made his latest statement on interest rates. As of the time of writing, the price of Bitcoin (BTC) is 121,897.96, up 2.05% in the last 24 hours and 5.41% over the past week. Ethereum (ETH) has a higher growth momentum, increasing by 5.62% in one day and 28.71% in one week, with a price of 4,747.07 dollars. The strength of the cryptocurrency market is tied to the overall positive sentiment of investors, but interest rate decisions are an important psychological factor. In the event that Trump succeeds in his effort to raise interest rates by 1%, analysts believe that providing additional liquidity could further boost speculative assets such as Bitcoin and Ethereum. However, this action will also increase the risk of inflation, creating a more unstable macroeconomic environment for investors.