United States

Why Trump will have a hard time cutting interest rates this year

The president and the financial markets are hoping and begging for an interest rate cut this year. What are the chances of that happening? They’re low, unless the Fed needs to come to the rescue of a disastrous stock market plunge. What would cause the stock market to plunge? An escalation of the China trade war and/or more political chaos in Washington are the two most likely sources of trouble. Based on how the economy is doing, which, right now, is good, there’s no chance of the Fed lowering rates. And a few Fed presidents played bad cop/badder cop last week when the tariff issue was distracting investors from the issue of interest rates. Patrick Harker, president of the Philadelphia Federal Reserve, said what nobody on Wall S ...