Trump has recently started to pressure on interest rates again. He publicly expressed hope that the federal funds rate would be lowered to 1% or even lower within a year—this statement has sparked quite a bit of discussion in both the crypto and macro finance circles.

The reason he is so eager to cut rates is quite straightforward: U.S. national debt has already exceeded $38 trillion, and high interest rates are causing the government's financing costs to soar. He believes that low rates can not only ease the debt burden but also stimulate economic growth and encourage borrowing, while also boosting risk assets like stocks and Bitcoin. He even emphasized that the next Fed chair should heed his advice, stating that U.S. interest rates should be the lowest in the world.

However, reality is quite different from his ideas. On December 10, the Federal Reserve cut rates by 25 basis points, setting the federal funds target range at 3.5%-3.75%, marking the third rate cut this year. But the Fed's dot plot indicates that in 2026 and 2027, there might only be one rate cut each, possibly settling around 3.4% and 3.1%. This pace falls far short of the aggressive approach Trump desires.

Powell continues to emphasize the independence of the Federal Reserve's policy, and there are internal disagreements. Trump's attitude toward this rate cut is very clear—it’s too modest, and could have been more aggressive. He is also privately advocating for dovish figures like Kevin Warsh or Lael Brainard to succeed Powell (whose term runs until May 2026). It seems the "stalemate" over rate cuts is far from over.