Basri Caneri 
US President Donald Trump made a virtual speech to the World Economic Forum (WEF) and expressed his thoughts on economic policies and interest rates. Trump emphasized the need to lower interest rates in his speech and said, “As oil prices fall, I will demand that interest rates be lowered immediately.”
Interest Rate Intervention Request
Trump’s statement comes just a week before the Fed meeting in Washington on January 29. However, borrowing costs are often determined by various economic factors, such as market dynamics and US Treasury yields. The Federal Reserve (Fed), as an independent institution, makes decisions aimed at price stability and maximum employment. Trump’s criticism of Fed Chairman Jerome Powell came up frequently during his presidency.
Powell had previously given a clear “No” when asked at a press conference whether he would resign if Trump ordered him to do so. The Fed’s independence and the principle of making decisions based on economic data call into question the feasibility of such demands.
Biden and Inflation Criticism
Trump harshly criticized the Biden administration, claiming that high inflation in the US has reached “the worst level in history”. However, it was stated that some of Trump’s data on inflation were not accurate. Although Trump claimed that inflation reached record levels under the Biden administration, it was noted that these claims were not true, and that the highest inflation rate in US history was 23.7% in 1920.
Trump also claimed that the US is “50% higher than the historical inflation target”. However, the Personal Consumption Expenditures (PCE) price index, which the Fed considers as its benchmark, has increased by 2.4% as of November 2024, quite close to the Fed’s 2% target.
USA: Artificial Intelligence and Cryptocurrency Capital
In his speech, Trump not only touched on interest rate policies, but also emphasized the US’s claim to leadership in the field of technology. “America will be the capital of artificial intelligence and cryptocurrency,” Trump said, signaling that stronger policies will be pursued in these areas.
The US President’s statements reopened the debate on the impact of cryptocurrency and blockchain technologies on economic growth and innovation. In addition, markets have wondered whether such promises would be backed by concrete policy steps.
“Common Sense Revolution” on the Economic Agenda
Describing his presidency as a “common sense revolution”, Trump stated that the US would become a “stronger, richer and more united” country. He also described the economic policies of the Biden administration as a “failure” and claimed that these policies led to chaos in the economy.
These statements are considered as part of the debate on economic policies as well as efforts to redefine the US’s global economic role. However, some of Trump’s claims are disputed by experts in terms of accuracy.
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