• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Fed’s Potential 300bp Rate Cut Sparks Economic Debate

user avatar

by Giorgi Kostiuk

11 hours ago


The debate around the possible reduction of interest rates by the Federal Reserve (Fed) has gained traction following Donald Trump’s calls for a 300 basis points cut. Analysts voice concerns about the implications of such a move.

Implications of a Significant Rate Cut

Donald Trump is advocating for a 300 basis points reduction in interest rates. The largest recent cut occurred on March 15, 2020, with a reduction of 100 basis points. Experts are now evaluating the possible consequences of such a cut. Higher rates indeed increase national debt servicing costs, currently around $1.2 trillion annually, translating to approximately $3.3 billion daily.

Likelihood and Consequences of Such a Cut

While Trump emphasizes the need for rate reductions, even a 100 basis point cut would be significant, let alone a 300 basis points cut. Historically, the maximum cuts did not exceed 100 basis points, making Trump’s request less likely.

Economic Impact and Potential Outcomes

A 300 basis points cut may lead to complex consequences. The U.S. economy might grow beyond 3.8%, yet inflation could rise past 5%. Additionally, housing prices might surge over 25%, reducing affordability and exacerbating inflation pressures. The dollar also faces challenges, having recorded a -10.8% decline in the first half of 2025.

Thus, the discussion surrounding the potential 300 basis points rate cut by the Fed reveals a wide array of opinions and questions regarding the future of U.S. economic policy and its impact on domestic and global economies.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Bitcoin Exceeds Historical Maximum: Market Trends and Predictions

chest

Bitcoin breaks its all-time high, Ethereum nears a breakout, and altcoins like SUI and XRP show strong growth.

user avatarGiorgi Kostiuk

Pump.Fun Token Launch: What You Need to Know

chest

The Pump.Fun token is launching on Coinbase with an ICO set for July 12. Learn the details and features.

user avatarGiorgi Kostiuk

Renaming of PumpBTC Token on Binance's Alpha Platform

chest

Binance announced the renaming of PumpBTC token on Alpha platform, with no anticipated financial impact.

user avatarGiorgi Kostiuk

New Tariffs by Trump: Impact on Markets and Economy

chest

President Trump announces 15-20% tariffs on trading partners, causing diverse reactions in the markets.

user avatarGiorgi Kostiuk

Overview of Leading Cryptos: BlockDAG, Cardano, Ripple, and Solana

chest

Exploring promising cryptocurrency projects BlockDAG, Cardano, Ripple, and Solana, their features and growth potential.

user avatarGiorgi Kostiuk

GMX Suspends Trading Due to $42 Million Exploit

chest

GMX faced a $42 million exploit impacting its GLP liquidity pool, prompting trading suspension and token price decline.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.