Why an aggressive rate cut could backfire on Trump
September 16, 2025
9 min
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105 of 300
September 16, 2025
Why an aggressive rate cut could backfire on Trump
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Nprs Planet Money Episodes Around September 16, 2025
Episode 105 of 300 — walk the feed in the order it was published.
9:19This episodeWhy an aggressive rate cut could backfire on Trump
Summary
The Federal Reserve is expected to make a modest cut to interest rates this week of about a quarter or half a percentage point. President Trump, however, believes they should take a far more aggressive approach: a 3-percentage point cut. <br /><br />Today on the show, we examine what a 3-percentage point cut would actually look like, and why that outcome would likely backfire on the president. <br /><br /><strong>Related episodes:</strong> <br /><a href="https://www.npr.org/2025/05/08/1249919772/jerome-powell-fed-reserve-job-security" target="_blank">It's hard out there for a Fed chair</a> <br /><a href="https://www.npr.org/2024/08/14/1197968126/should-presidents-have-more-of-a-say-in-interest-rates" target="_blank">Should presidents have more of a say in interest rates?</a> <br /><a href="https://www.npr.org/2025/03/04/1235758702/executive-orders-federal-reserve-doge" target="_blank">Can the Federal Reserve stay independent?</a> <br /><br /><em>For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at </em><a href="http://plus.npr.org/" target="_blank"><em>plus.npr.org</em></a><em>. Fact-checking by </em><a href="https://www.npr.org/people/1268825622/sierra-juarez" target="_blank"><em>Sierra Juarez</em></a><em>. Music by </em><a href="https://dropelectric.bandcamp.com/" target="_blank"><em>Drop Electric</em></a><em>. Find us: </em><a href="https://www.tiktok.com/@planetmoney" target="_blank"><em>TikTok</em></a><em>, </em><a href="https://www.instagram.com/planetmoney/" target="_blank"><em>Instagram</em></a><em>, </em><a href="https://www.facebook.com/planetmoney" target="_blank"><em>Facebook</em></a><em>, </em><a href="https://www.npr.org/newsletter/money" target="_blank"><em>Newsletter</em></a><em>.</em> <br /><br />See <a href="https://pcm.adswizz.com">pcm.adswizz.com</a> for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.<br /><br /><a href="https://www.npr.org/about-npr/179878450/privacy-policy">NPR Privacy Policy</a>
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