Trump pressures Federal Reserve for interest rate cuts after GDP surprises.
- Trump defends interest rate cuts with GDP above expectations.
- The Federal Reserve faces political pressure over its monetary policy.
- Markets are monitoring Powell's succession at the Fed.
US President Donald Trump has once again pressed the Federal Reserve for faster interest rate cuts after the release of better-than-expected economic growth figures. US Gross Domestic Product (GDP) grew 4,3% in the third quarter of 2025, exceeding the 3,3% projection and reinforcing the White House's argument that the economy has room for a more flexible monetary policy.
According to Trump, robust economic performance should not be accompanied by high interest rates. The president believes lower rates would help boost investment, consumption, and competitiveness, especially in an environment of strong growth and productivity gains. He criticized the current stance of the Federal Reserve, stating that raising or maintaining high interest rates during periods of expansion can limit the country's economic potential.
The president's position contrasts with the cautious approach of the Federal Reserve, which continues to prioritize controlling inflation. Central bank officials have advocated for decisions based on price and labor market data, avoiding rapid adjustments that could reignite inflationary pressures. Even so, the GDP result has reignited the debate about the appropriate pace of monetary policy.
Kevin Hassett, former director of the National Economic Council, expressed support for Trump's vision. In an interview with CNBC, he stated that the Federal Reserve did not react quickly enough to the new growth cycle. Hassett highlighted productivity gains linked to artificial intelligence, suggesting that these gains help to contain inflation even with a heated economy.
The economist also cited trade policies, including tariffs, as factors that contributed to the reduction of the trade deficit and the strengthening of economic activity. In his assessment, this set of elements creates room for interest rate cuts without compromising price stability.
The debate comes at a sensitive time for the Federal Reserve, as Jerome Powell's term ends in May 2026. Markets are closely watching signals about who will be nominated to lead the institution and what the direction of future monetary policy will be. Hassett has been cited as a possible name, given his alignment with the vision advocated by Trump.
Despite the political clash, Hassett emphasized the importance of the Federal Reserve's independence and the collegial decision-making process. For investors, including cryptocurrency market participants, the combination of economic growth, interest rates, and changes in Fed leadership remains a central factor in shaping expectations in the coming months.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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