Trump's Interest Rate Demands Seen as Impractical and Potentially Disruptive

President Donald Trump's repeated calls for the US Federal Reserve to cut interest rates to 1% have been met with skepticism by analysts, who warn that such a drastic move would likely backfire and cause massive dislocation in the global financial system.

The current policy rate is between 3.75% and 4%, and cutting it by three percentage points 'seems cataclysmic,' said J. Benson Durham, founder of DASM investment research firm.

Trump's demands have been seen as a way to deflect from issues like high consumer prices ahead of the midterm elections in November, rather than a serious proposal for monetary policy.