Trump Says Fed Should Be Independent, But Adds It ‘Should Listen To Smart People Like Me’

President Donald Trump on Tuesday asserted that while the Federal Reserve should be independent, it should also listen to suggestions coming from “smart people like me.”

Speaking to reporters at the White House, President Trump reiterated that the benchmark interest rate “should be much lower,” ahead of the central bank’s rate decision scheduled for Wednesday, according to a CNBC broadcast.

“It should be [independent], it should be. But I think they should listen to smart people like me. I think I have a better instinct than him,” Trump said, referring to Federal Reserve Chair Jerome Powell. 

“If you look, all the economists got it wrong, I got it right along with some other people out of a hundred. So they should listen to people that are smart, there’s nothing wrong with that, but they have to make their own choice. But they should listen,” Trump added.

This comes a day ahead of the crucial September meeting of the Federal Open Market Committee (FOMC). The central bank is widely expected to cut interest rates by 25 basis points, marking the first rate cut in 2025. Analysts at Morgan Stanley expect four interest rate cuts between September and January. The firm stated in a recent note that the central bank will aim to achieve neutral policy rates “more decisively” before pausing to assess the impact of its rate cuts.

Data from the CME FedWatch tool now points to a 96.1% probability of the Fed cutting interest rates by 25 basis points in September.

Meanwhile, U.S. equities declined in Tuesday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down  0.21%, while the Invesco QQQ Trust (QQQ) declined 0.14%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

Also See: Trump Administration To Appeal Court Decision Blocking Lisa Cook’s Firing: Report

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