Can Trump Cut Interest Rates?

Donald Trump has touted reducing interest rates to lift the financial burden on consumers.

The president ran his 2024 presidential campaign on reducing prices for Americans, which included lowering interest rates. The 47th president proposed several ways to lower rates, like peacefully asking the Fed to prioritize rate cuts over keeping them high, or even pressuring them to do so.

However, could Trump even do this?

Partially. The president could definitely deliver significant policy reform in the economy which may encompass greater willingness to cut rates. Unlike the passive economic approach of the last administration, Trump could stimulate rapid changes in policy, especially through pass-and-dump reforms to the Republican-controlled Congress.

However, the president does not have complete authority over interest rates. Rather, the Federal Reserve led by Jerome Powell as Fed Chair, could control rates. Trump will need to work through the Fed to pass rate cuts.