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July 14, 2025

Potential Risks of Trump’s Proposed Fed Policy Rate

U.S. President Donald Trump calls for a 1% benchmark interest rate from the Federal Reserve. He argues it would lower government borrowing costs. This move aims to finance rising deficits linked to his spending and tax cuts. However, this type of policy could have negative repercussions for the U.S. economy. Investors should analyze the potential impacts of such a drastic measure. Understanding government intentions in monetary policy plays a critical role in investment decisions. This proposal sparks significant debate about fiscal responsibility versus stimulating growth.

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