Trump Pushes for Ultra-Low Interest Rates: 1% Target by 2026

Source: Coinomedia Original Title: Trump Wants Interest Rates at 1% by 2026 Original Link: https://coinomedia.com/trump-wants-interest-rates-at-1-by-2026/

Ultra-Low Interest Rate Vision

Former President Donald Trump has declared that U.S. interest rates should drop to 1% or even lower by 2026 as part of his broader economic agenda. This aggressive stance emphasizes the need for rapid rate cuts to stimulate growth and support business expansion.

Trump has been highly vocal about his dissatisfaction with current Federal Reserve policies, which have maintained elevated rates to combat inflation. He argues that cheaper borrowing costs and increased liquidity would boost both business investments and consumer spending across the economy.

Leadership Changes on the Horizon

Trump’s ambitions extend beyond rhetoric. He is reportedly considering replacing current Fed Chair Jerome Powell when his term concludes in 2026. Potential successors under consideration include Kevin Warsh and Kevin Hassett—both viewed as more sympathetic to aggressive monetary easing policies.

By installing a Fed leader aligned with low-rate objectives, Trump aims to ensure that economic policy prioritizes liquidity and affordable credit over inflation management.

Current Fed Policy Takes a Different Path

The Federal Reserve’s actual stance tells a different story. After multiple rate hikes over the past two years, current rates stand around 3.5%, with Fed projections indicating only modest cuts anticipated for 2026.

Analysts note that achieving 1% rates under normal economic conditions would require either significant economic weakness or substantial political pressure on the central bank. This divergence highlights a fundamental tension between the White House’s economic priorities and the Fed’s commitment to policy independence.