Team Trump can’t see the forest for the trees on this one. Keeping interest rates up is a tacit admission that we are in a strong economy, and the Fed anticipates it will remain strong, and even grow stronger.
The purpose of interest-rate setting (manipulation) is to encourage or dissuade investment. If it costs you more to borrow, you’ll be less likely to do so, thereby dampening the economy. If it costs you less, then you’re more likely to borrow, and the economy will be stimulated to grow by the increased activity.
The Trump administration’s message should be to thank the Fed for confirming that their economic plan is a good one, and it is working spectacularly - to the benefit of all Americans.
If interest rates are lowered the market should benefit as the risk free rate is used in the DCF valuation formula. Plus, it stands to reason that lower interest rates make borrowing money cheaper for companies, and therefore may contribute to higher profits.
Powell is so transparently political that there’s little chance he will do anything to benefit Trump. He always says they’re “data dependent” yet he is making assumptions about tariffs.
BTW Powell is Powell is not an economist. He holds a BA in Politics and has a JD degree.