What Old Wu said is

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Phyrex
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2 days ago

Old Wu mentioned that, aside from this reason, the fiscal deficit is also a key point. Trump himself has said that every 1% increase in interest rates corresponds to $300 billion in interest expenses. Trump hopes to reduce it to 1%. If achieved, it could save over $1 trillion in expenses, which would significantly alleviate his pressure.

However, the real issue is that if the interest rate is only 1%, inflation is likely to continue rising uncontrollably. Additionally, will the Federal Reserve stop tapering? Even with an average tariff of 15%, it exceeds last year's 7.5 times, and price pressures will likely lead to rate hikes, even with Waller taking office.

So, essentially, although Powell is a bit slow, it doesn't seem like there will be any mistakes.

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