Trump has made it harder for the Fed to do the right thing

The central bank doesn't want to look like they're following the president's orders

President Trump.
(Image credit: Illustrated | Win McNamee/Getty Images, crbellette/iStock, DickDuerrstein/iStock)

President Trump really wants the Federal Reserve to cut interest rates. He's repeatedly accused the central bank of holding back economic growth and undermining his trade war with China. After the Fed paused its rate increases in January, Trump demanded rate cuts, and threatened to put at least two forthright cronies on the Fed board. Just this Monday, Trump went on CNBC and attacked the central bank again: "They certainly didn't listen to me because they made a big mistake. They raised interest rates far too fast."

The markets seem to think Trump will get what he wants. They're currently pricing in a 70 percent chance the Fed will reduce interest rates in July, and a 60 percent chance they'll cut three times in 2019. On the economic merits, the Fed would certainly be justified in doing so.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.