Trump Calls for Emergency Fed Rate Cut as March Meeting Begins

TLDR

• Trump called for a “special meeting” for the Fed to cut rates immediately
• He said “a third-grade student would know” now is the time to cut
• CME futures show a 99% chance rates stay unchanged this week
• The US-Iran conflict is pushing oil prices up, which could raise inflation
• Traders have priced in zero rate cuts for all of 2026

US President Donald Trump has publicly pressured the Federal Reserve to cut interest rates immediately, calling for a “special meeting” to make it happen. He made the comments to reporters on Monday, March 16.

The president wants lower rates to reduce the cost of servicing the US national debt, which now stands at $39 trillion. He also argues lower rates would help the economy, housing, and the stock market.

Lower interest rates tend to push investors toward riskier assets. That includes both stocks and crypto, as cheaper borrowing means more money flows into speculative markets.

Fed Meeting This Week

The Federal Reserve began its two-day March meeting on Tuesday. A rate decision is expected Wednesday.

Despite Trump’s pressure, CME futures markets show a 99% probability that rates will stay in the 3.50% to 3.75% range. The April 29 meeting shows a 97% chance of no change too.

US inflation held steady at 2.4% in February. However, it is expected to rise in March, according to Trading Economics. Rates have not changed since December.

Oil Prices Add More Pressure

The US-Iran conflict has caused a surge in oil prices. Higher oil means higher fuel and transport costs, which pushes up the price of goods and could increase inflation.

If inflation rises, the Fed may be pushed to raise rates rather than cut them. This puts the Fed in a difficult position as it monitors the conflict’s economic impact.

Jeff Mei, chief operating officer at crypto exchange BTSE, told Cointelegraph that traders have already priced in zero rate cuts for 2026.

Trump’s pick to replace Powell, Kevin Warsh, is expected to take over in mid-May. Warsh is seen as more open to cutting rates than Powell.

For now, the Fed is expected to hold rates steady when it announces its decision on Wednesday, March 18.

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