16 September 2025
Why the Federal Reserve wants to avoid an aggressive rate cut
The Indicator from Planet Money
About
The Federal Reserve is expected to make a modest cut to interest rates this week of about a quarter or half a percentage point. President Trump, however, believes they should take a far more aggressive approach: a 3-percentage point cut.
Today on the show, we examine what a 3-percentage point cut would actually look like, and why that outcome would likely backfire on the president. Related episodes:
It's hard out there for a Fed chair
Should presidents have more of a say in interest rates?
Can the Federal Reserve stay independent?
For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.
Learn more about sponsor message choices: podcastchoices.com/adchoices
NPR Privacy Policy
Today on the show, we examine what a 3-percentage point cut would actually look like, and why that outcome would likely backfire on the president. Related episodes:
It's hard out there for a Fed chair
Should presidents have more of a say in interest rates?
Can the Federal Reserve stay independent?
For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.
Learn more about sponsor message choices: podcastchoices.com/adchoices
NPR Privacy Policy