Trump's proposal to lower the Fed's interest rate to 1% has raised questions among economists.

According to ChainCatcher news, as reported by Jin10, U.S. President Trump recently suggested that the Fed should drop the Benchmark Interest Rate to 1% to reduce government borrowing costs. Economists point out that in the current economic environment with a U.S. unemployment rate of 4.1% and an inflation rate of 2.5%, such a significant rate cut could potentially raise inflation again and undermine the Fed's policy independence. Historical data shows that a 1% interest rate typically occurs during economic crises, such as the 2008 financial crisis and the pandemic in 2020. Analysis shows that the large and beautiful bill passed by the Trump administration is expected to expand the fiscal deficit, and if paired with aggressive interest rate drops, it may exacerbate market concerns about inflation. Fed officials emphasize that there are risks associated with significant interest rate drops before the impact of the new tariff policy on inflation becomes clear.