The President of the United States, Donald Trump, has made his first request to the U.S. Central Bank (The Federal Reserve) to lower interest rates. In a video statement delivered to world leaders at the World Economic Forum in Davos, Switzerland, Trump emphasized that he would push for lower interest rate policies in the United States.

"I will demand that interest rates be lowered immediately," Trump stated, as quoted by CNBC International on Friday (January 24, 2025).

He also added that cutting interest rates should become a global trend. "Interest rates must go down worldwide. Interest rates should follow us everywhere," he added.

This statement marks Trump’s first public communication regarding monetary policy with Federal Reserve officials after a previously controversial relationship during his first term in the White House.

To date, Trump has not detailed his views on U.S. monetary policy since resuming office. However, during his 2024 presidential campaign, he indicated his intention to be involved in decisions related to interest rates.

In a previous interview, Trump expressed his hope that The Fed would heed his perspective. He also mentioned plans to speak directly with Federal Reserve Chair Jerome Powell at an appropriate time.

Meanwhile, Powell and The Fed have consistently emphasized the importance of central bank independence. Powell has repeatedly affirmed that The Fed's decisions are not influenced by political considerations, despite receiving criticism, particularly for initially characterizing the inflation surge in 2021 as a temporary issue. This miscalculation led to a series of aggressive interest rate hikes.

At present, markets see little chance of further interest rate cuts. The Fed’s benchmark rate currently stands at a range of 4.25%-4.5%, following a one percentage point reduction over the last four months of 2024.

According to data from the CME Group, the first rate cut is likely to occur in June. Traders estimate a 50-50 chance of another cut before the end of this year.