Trump's Interest Rate Demand at Davos

In Davos, U.S. President Donald Trump urged immediate interest rate cuts, emphasizing global alignment. As the Fed prepared for its first meeting under Trump's administration, uncertainties around policy and potential economic impacts loomed large, with debates on tariffs, immigration, and inflation shaping discussions.

In a bold statement at the World Economic Forum in Davos, President Donald Trump urged a swift reduction in interest rates, suggesting other nations should mirror the move. His comment marks his first public critique of Federal Reserve's monetary policy since his administration began just days ago.

This call for lower rates comes as the Federal Reserve gears up for its first policy meeting under the Trump administration, scheduled for January 28-29. With no changes expected immediately, officials are closely watching inflation and economic momentum. The December meeting saw a reduced rate to between 4.25% and 4.5%, amid easing inflationary pressures.

Uncertainty looms large as Fed officials, such as New York Fed President John Williams, highlight the unpredictable nature of government policies affecting fiscal, trade, and regulatory areas. Meanwhile, Trump's tariff strategies and immigration plans carry potential inflation risks, sparking debate over future rate decisions among economists and investors.

(With inputs from agencies.)