Trump’s Impossible Bet: Rate Cuts or Political Survival

A widening gap has emerged between the Federal Reserve and financial markets over the trajectory of US interest rates in 2026. While the Fed signals caution on further cuts, markets are betting on two to three reductions this year. At the heart of this disconnect lies an uncomfortable paradox: President Donald Trump’s push for lower rates may be undermined by the very inflation that threatens his political survival. Markets Are Betting on Rate Cuts by Mid-Year According to prediction market platform Polymarket, the probability of a rate cut at the January Federal Open Market Committee (FOMC) meeting stands at just 12% source: https://beincrypto.com/trumps-impossible-bet-rate-cuts-or-political-survival/