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Recently, Trump has once again become the focus of public opinion. On July 30, he loudly called for the Fed to cut interest rates in front of the media. This politician has always been outspoken, showing no hesitation in expressing his views.
However, this call comes at a time when U.S. economic data is performing exceptionally well. The recently released second quarter GDP data far exceeded expert expectations, thrilling the market. Typically, such impressive economic performance would be a source of pride for the government, but Trump has done the opposite, focusing attention on calls for interest rate cuts.
Analysts believe that Trump's move may have ulterior motives. Although the economic data is favorable and does not warrant a hasty rate cut, a lower interest rate environment could help stimulate a rise in the stock market and corporate financing, which may be related to his political considerations.
Faced with the ongoing pressure from the President and strong economic data, the Fed decision-making body is undoubtedly caught in a dilemma. On one hand, the data shows that the economic situation is good, which does not support a rate cut; on the other hand, the pressure from the executive branch cannot be ignored. It is speculated that there may be intense discussions within the Fed on this issue, with clear differences of opinion.
For the general public, the direct impact of interest rate policies is primarily reflected in mortgage rates and stock market performance. However, the complex economic theories and policy-making processes remain areas that professionals need to study in depth.
In any case, Trump's statement has once again sparked discussions about the influence of political factors in the formulation of economic policies, and it highlights the complexity of the direction of monetary policy in the context of improving economic data.