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Trump Stands by His ‘Brilliant’ Fed Pick Despite No Rate Cuts · GNN Daily Breaking News

• 0:00
  Speaker 1: President Trump is standing firmly behind his choice to lead
• 0:03
  Speaker 1: the Federal Reserve, praising the nominee as brilliant, even as
• 0:07
  Speaker 1: frustration grows over the central Bank's refusal to cut interest rates.
• 0:12
  Speaker 1: The defense comes amid mounting political pressure, with Trump's allies
• 0:17
  Speaker 1: urging the FED to ease borrowing costs to stimulate growth,
• 0:21
  Speaker 1: while critics worn against undermining the institution's independence. The nominee,
• 0:26
  Speaker 1: confirmed earlier this year, has faced skepticism from lawmakers and
• 0:30
  Speaker 1: markets alike. Despite Trump's insistence that rate cuts are necessary
• 0:35
  Speaker 1: to boost investment and consumer spending, the FED has held
• 0:39
  Speaker 1: its ground, citing inflationary risks and the need to maintain credibility.
• 0:45
  Speaker 1: For Trump, the lack of cuts is a political irritant,
• 0:48
  Speaker 1: but he has doubled down on his support, portraying the
• 0:51
  Speaker 1: pick as a visionary who will ultimately deliver results. This
• 0:55
  Speaker 1: clash reflects a familiar tension in US politics. Residents often
• 1:00
  Speaker 1: seek monetary policy that aligns with their economic agenda, while
• 1:05
  Speaker 1: the Fed guards its autonomy. Trump's public praise of his nominee,
• 1:10
  Speaker 1: even in the face of policy disagreements, signals his desire
• 1:14
  Speaker 1: to keep the central bank aligned with his broader narrative
• 1:17
  Speaker 1: of economic strength, markets are watching closely. Investors had anticipated
• 1:23
  Speaker 1: at least one rate cut this summer, but the Fed's
• 1:26
  Speaker 1: decision to hold steady has kept borrowing costs high. That
• 1:29
  Speaker 1: has implications for housing, corporate debt, and consumer credit, arias
• 1:34
  Speaker 1: Trump has repeatedly highlighted as critical to sustaining growth. The
• 1:39
  Speaker 1: episode also underscores the political stakes of central banking. By
• 1:43
  Speaker 1: defending his nominee, Trump is betting that loyalty and long
• 1:47
  Speaker 1: term alignment matter more than immediate policy wins. Yet, the
• 1:51
  Speaker 1: Fed's resistance shows that even presidential influence has limits when
• 1:56
  Speaker 1: it comes to monetary decisions. Ultimately, Trump's stance reveals both
• 2:01
  Speaker 1: confidence and calculation. He is willing to absorb short term
• 2:05
  Speaker 1: frustration over rates in exchange for projecting stability and control
• 2:09
  Speaker 1: over his administration's economic team. Whether the FED eventually shifts
• 2:14
  Speaker 1: course will determine if that gamble pays off.