You may have seen one of the many instances in which President Trump has urged Federal Reserve Open Market Committee Chairman Jerome Powell to lower interest rates. In his most recent post on the subject, Trump said:
Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs. Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!! DJT
Your Survival Guy is inherently wary of low interest rates that cheapen the value of retirees’ savings by lowering their return and could potentially inflate away their purchasing power. But Trump may have another reason he’s so concerned about getting those rates down. Take a look at the chart below of the interest payments the United States has been making on all of its debt. Look how those payments soared as the Fed raised rates to combat Bidenflation.
Action Line: Don’t mistake this for an argument for lowering rates, but an understanding of Trump’s motivations when he asks Powell to lower rates. Click here to subscribe to my free monthly Survive & Thrive letter.
