In mid-July, Trump urged Federal Reserve Chairman Jerome Powell not to cut interest rates before the November election in an attempt to influence interest rate decisions. Trump’s economic policies are usually “low interest rates + low taxes + high tariffs”, and these measures are all for election consideration. Trump's strategy is to hope that the economy will not get a boost from interest rate cuts until he wins the election, thereby affecting his opponent's election.

Will this trick work? In fact, Trump also tried a similar strategy in 2018-2019. At that time, he did not want Powell to raise interest rates and threatened to fire him, but the effect was not significant. He doesn't want a rate cut this time, and the outcome may not change much. According to market expectations, Powell is expected to cut interest rates in September and at least one more rate cut in November and December, with the rate cut throughout the year likely to be between 50 and 75 basis points.