Recently, news about former US President Trump has garnered wide interest. According to reports, Trump is planning significant initiatives aimed at replacing Federal Reserve Chairman (FED) Powell and substantially lowering the interest rate. This news comes from leaks of "Kofisi messages," which stated that Trump's main goal is to reduce the interest rate by 300 basis points, which would significantly lower the current rate that ranges between 4.25%-4.5%.

Trump believes that the current high interest rate policy hinders economic growth and that American economic growth can only be revived through a radical expansionary monetary policy. However, this idea has faced questioning from economists, who see a 300 basis point rate cut as excessive and nearly impossible.
In fact, the Federal Reserve (FED), as an independent central bank, is not influenced by direct control from an individual or a single political party. According to general market expectations, even if the Federal Reserve (FED) begins to lower the interest rate, it may have to wait until around September of next year, and it is likely to adopt a moderate pace of 25 basis points each time. These cautious stances stem from historical lessons, particularly the negative consequences of radical interest rate cuts in the 1970s: rising asset prices, while wage growth stalled, ultimately leading to a widening wealth gap.
Currently, wealth inequality in the United States has reached a concerning level. The richest 0.1% of the population own wealth equivalent to 5.5 times the wealth of the poorest 50% of the population, while the richest 1% control 51% of the stocks in the United States. If interest rates are significantly reduced according to Trump's vision, it could exacerbate this unequal phenomenon.
It is worth noting that global monetary policy shows a clear trend towards differentiation. In May of this year, many global central banks launched the largest easing cycle in 20 years, with rates being cut 15 times. At the same time, the Federal Reserve (FED) has kept the interest rate steady since December 2024, considering that the tariff policy that Trump may reinstate could raise inflation.
Trump is seeking through his plan to replace the Chairman of the Federal Reserve (FED) and significantly reduce the interest rate, to align monetary policy more closely with his political goals. However, this move may lead to further economic and political controversy, necessitating our monitoring of subsequent developments and their potential impacts.