Source: The Daily Economy
by Alexander W Salter
“Donald Trump wants lower interest rates. He has said so openly and has pressured the Federal Reserve accordingly. The political logic seems obvious: easier money boosts asset prices, juices consumer spending, and appears to support headline growth. With midterms approaching, that sugar high is tempting. But it’s also a mistake — economically, politically, and strategically. Lower rates at this point in the cycle would almost certainly reignite inflation. And except in the very short run, they would not make capital more affordable in real terms. Instead, they would worsen the affordability crisis (which voters are already upset about) and undermine the GOP’s reputation as the party of economic responsibility.” (02/02/26)
https://thedailyeconomy.org/article/will-republicans-fall-for-inflationary-populism/