Why an aggressive rate cut could backfire on Trump

Why an aggressive rate cut could backfire on Trump

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      655
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      16 sep. 2025
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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.

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