Economists Uncut

Trump’s New Plan to Lower Interest Rates in 2025 (Uncut) 02-14-2025

Trump’s New Plan to Lower Interest Rates in 2025

President Trump wants to cut interest rates to help everyday Americans so that’s a story that we’ve all been hearing right I’m sure they heard that but the thing is that President Trump has now changed his plan he’s got a new plan to make this happen so if you don’t know what’s going on I would say probably 99% of people don’t know what’s going on they have been following along so I’m going to explain this to you and clear up the confusion so here’s what you must know you have to understand this because this

is going to come up again it’s a crucial part of the conversation so when it comes to interest rates the 10-year treasury is the most important for you and me because this is the one that has the most impact on borrowing costs for everyday Americans we’re talking about mortgage rates auto loan rates credit card debt rates business lending rates Etc so just remember that the 10-year yield is the most important now I’m going to build out for you a timeline of events so you know the whole story and you know where

we’re currently at so on January 23rd president Trump spoke at DAV and I want to show you what he said about interest rates with oil prices going down I’ll demand that interest rates drop immediately and likewise they should be dropping all over the world interest rates should follow us okay so president Trump said that he will demand that interest rates drop immediately okay now with that in mind here’s the interest rate on the 10-year treasury for the past 5 years I drew a red line when President Trump said that

at Davos three weeks have passed by and there’s been no dramatic change now on January 29th the Federal Reserve had their meeting and at that meeting they decided to not cut interest rates now here’s where things become confusing and the media makes the situation even worse so Trump wants lower interest rates right and the Federal Reserve did not cut rates right and then mainstream media starts saying things like so look at this this is coming from Fox Trump blasts fed for not cutting interest rates like

oh you know Trump’s so pissed that the Federal Reserve didn’t cut rates and I’ll show you another example so this is coming from Forbes Trump lashes out a Drome Powell after fed doesn’t cut interest rates so you know I mean I could show you a dozen more but you get the picture Okay so about one hour after the Federal Reserve said that they’re not cutting interest rates this is what Trump posted on Truth social so nowhere in his post does it mention interest rates nowhere he blasts the Federal Reserve for doing a terrible

job on inflation on regulation and a few other things but not a word about being upset about the interest rate decision now I want you to listen very carefully you have all the media reporting that Trump is so upset that the Federal Reserve didn’t cut rates but I’ll tell you that’s not what I heard on February 2nd president Trump says that he agrees with the federal reserve’s decision to not lower interest rates so let me show you and on the FED on the FED f chair Jerome Powell he held race what’s your

reaction to him not changing the race uh what did you say Fed chair Jerome Powell the FED meeting was this week he held the rates he didn’t cut the no I’m not surprised I think holding the rates at this point was the right thing to do okay so there’s a lot of confusion I mean just look at the situation Trump demands that interest rates drop immediately and then he says that he agrees with the federal reserve’s decision to not lower interest rates and then the media says that Trump disagrees with the Federal Reserve even though

Trump agrees with the Federal Reserve so it’s like what’s going on and then on February 12th president Trump says interest rates should be lowered and then on the same day February 12th the chair of the Federal Reserve Jerome Powell says that President Trump will not influence the federal reserve’s decision on interest rates so I want to show you the video clip but I’m more concerned with uh the president’s statement at 7 58 this morning where he said interest rates should be lowered um he said it will that

influence what the FED actually does I um as a practice never comment on anything the President says but I think people can um can be confident that we’ll continue to keep our heads down do our work make our decisions based on what’s happening in the economy the Outlook statements by elected officials are not among the things that cause you to act one way or the other that’s correct thank you okay now I want to give you the truth here’s what’s really going on Trump wants the Federal Reserve to cut interest rates the Federal

Reserve doesn’t want to do that right now and they’re not going to listen to Trump trump has no direct power of cutting interest rates so he’s taking matters into his own hands Trump has a new plan to get rates lower and I’ll have treasury secretary Scott bent explain it to you and then I’ll clarify it right after one one of the things I wanted to emphasize is that we are not focused on the whether the FED is going to cut not cut uh what we are focused on is lowering rates so uh we are less focused on the specific of rate cuts and

how do we get the whole curve down I mentioned that the tenure I believe is the important price to focus on it’s mortgages it’s long-term capital formation so um and look I I think with the president’s policy of energy dominance deregulation and non-inflationary growth I I think that the the 10 years is going to naturally come down and then look on top of it what if we do get some big savings on the spending side from the do programs okay so to clarify president Trump’s plan president Trump will try to

bring down interest rates by lowering inflation so first let’s ask this question does that make sense and the answer is yes this concept does make sense so I just want to give you a straightforward example let’s just say that inflation is at 9% then as an investor I want to be paid interest at a rate that is higher than 9% because as an investor if I take anything less than 9% then I would lose to inflation right it’s very straightforward if inflation is higher then the cost of borrowing is higher if

inflation is lower then the cost of borrowing is lower so the concept makes sense now here’s president Trump’s plan to lower inflation in order to lower interest rates so he wants to produce more oil so energy is a big input cost in just about everything so if you lower the cost of energy then everything becomes cheaper across the board by cutting government spending so if the government spends less money then the government in conjunction with the Federal Reserve will need to print less money and also deregulation so cut red

tape this is for improving efficiency and opening up opportunities which leads to lower prices now the question is will president Trump be successful in reducing inflation in order to lower interest rates so let me know what you think my opinion is that President Trump may be able to slightly affect inflation I believe that inflation and interest rates will be more impacted by the policies of the Federal Reserve and I want to say this to the financially Savvy people out there you may have been indoctrinated to falsely believe that

the Federal Reserve has no power or minimal power over long-term rates I mean don’t tell me you buy that BS don’t be so naive you tell me how low the 10-year yield was in 2020 through 2022 you tell me how low the 30-year yield was in 2020 through 2022 if the Federal Reserve lowers the FED funds rates and buys bonds do you really think that’s going to have no effect on long-term yields so interest rates will be determined by the markets however the Federal Reserve has the most powerful Market influence with monetary actions

not the president’s fiscal actions so I hope this clarifies the situation on President Trump’s new plan to bring down interest rates it’s really going to be done well the plan is to do so by lowering inflation let me know what you think I look forward to your comments Please Subscribe I’ll keep you updated thank you for the support and I wish you a very nice day take care

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button