Donald Trump said the US should have the lowest interest rates globally, arguing that every percentage point cut saves $600 billion and could erase the deficit.
In a Fox Business interview, he said lower rates are a “paper charge” and expressed confidence that Fed chair nominee Kevin Warsh could drive economic growth as high as 15%
1% lower interest rates saves the Federal government ~$300b a year in interest payments. 2% lower would double those savings
If they can lower interest payments on the national debt by $600b, that would be enough to ELIMINATE the entire federal income tax for taxpayers that make less than $150,000 a year
If they can add in some sensible spending cuts from Congress, the country would really be in business
Donald Trump is doubling down on his push for ultra‑low interest rates
Key points
- In a Fox Business interview, he said the U.S. should have the lowest interest rates in the world.
- He argued that every percentage point cut saves $600 billion and could even erase the deficit.
- Trump called lower rates a mere “paper charge”, suggesting they don’t carry real economic risk.
- He expressed confidence that Fed chair nominee Kevin Warsh could deliver growth as high as 15%, far above historical norms ⬇️
Trump's suggesting ultra-low Fed rates to cut borrowing costs and spur massive growth (he claims up to 15%, which is ambitious). But Treasury yields are market-driven, reflecting inflation expectations, demand, and Fed policy
High growth could indeed push yields up if it fuels inflation, but the Fed might try to keep rates low to sustain it—though that risks overheating
Realistically, 15% growth is unprecedented for the US
#TRUMP #Fed #TrumpCryptoSupport
