WHAT HAPPENED
President Trump took to social media on Wednesday demanding that the Federal Reserve cut interest rates, claiming the United States is once again “the Number One Credit in the World” and experiencing a “Gigantic Comeback.” He insisted that the Fed should “lower the rate” to reflect this so-called recovery.
But the facts don’t back him up.
The U.S. credit rating has actually been downgraded twice in recent years: first by Fitch Ratings in 2023 and again by Moody’s in 2024. America is currently rated AA+, not the top-tier AAA rating Trump is claiming.
WHY IT MATTERS
The Federal Reserve sets interest rates to stabilize prices and control inflation—not to boost political narratives. Trump’s call for rate cuts comes despite ongoing inflation concerns, slowing growth, and a national debt exceeding $35 trillion.
Lowering rates too soon could reignite inflation, devalue savings, and hurt Americans already struggling with rising costs.
The Fed’s independence from political interference is a cornerstone of U.S. economic stability. Attempts to pressure the Fed undermine that stability and could trigger wider economic harm.
WHAT TO WATCH FOR
The Fed’s next interest rate decision is due later this month.
Inflation data continues to show stubbornly high prices, particularly on food, housing, and healthcare.
Markets may react to continued political pressure on the Fed, increasing volatility.
BOTTOM LINE
Trump’s claim of a “Gigantic Comeback” is not supported by the actual economic indicators. The U.S. credit rating remains downgraded, inflation is still high, and the Fed must remain independent to avoid deepening the economic challenges facing working Americans.
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