Fed Cuts

What has President Trump said this week?

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What has President Trump said this week? 〰️

1. Federal Reserve Cuts Rates After Nine Months

The Federal Reserve announced a 0.25 percentage point cut in interest rates, lowering its benchmark to a range of 4% to 4.25% — its first reduction in nine months. Officials cited slowing job growth, moderated inflationary pressures, and signs of cooling in consumer demand as key reasons behind the move (CNN, 2025; BBC, 2025). 

Stephen Miran, Trump’s recently appointed Federal Reserve governor and former Treasury official, played a central role in shaping the discussion. He argued that while inflation has moderated, the risks of economic slowdown warranted a cautious but proactive cut, pushing for a larger rate cut (ultimately unsuccessful) (NPR, 2025). While inflation remains above the Fed’s long-term target, the decision reflects an effort to balance price stability with the risk of a broader economic slowdown. 

Markets had a mixed response, but major U.S. equity indices closed higher and Treasury yields eased. Analysts note that investor sentiment improved as the rate cut suggested a more accommodative monetary stance going forward (Wall Street Journal, 2025). For private equity investors, lower borrowing costs could improve deal financing conditions, though uncertainty around the Fed’s long-term policy trajectory remains. 

President Trump welcomed the move, framing it as a necessary step to sustain growth. Economically, the decision could ease pressure on credit markets, though investors remain watchful as the Fed has projected two additional rate cuts before year-end. 

2. U.S.-China Dialogue: Oil, Trade, and TikTok

The United States and China resumed high-level trade discussions in Madrid this week, focusing on three major issues: Chinese imports of Russian oil, ongoing trade tensions, and the looming U.S. deadline for TikTok’s divestment or ban (Al Jazeera, 2025; CNBC, 2025). 

While no final agreements have been reached, reports suggest progress toward a framework deal on technology transfers and market access. However, disputes over Chinese imports of Russian oil remain unresolved, particularly given U.S. sanctions concerns (BBC, 2025). 

On TikTok, U.S. officials unveiled a framework deal for its U.S. operations to be acquired by Oracle, Andreessen Horowitz, and Silver Lake (Bloomberg, 2025). ByteDance, TikTok’s parent company, would see its stake drop below 20%, with new outside investors holding 50% and existing U.S. investors about 30%. The plan would create a U.S.-based version of the app, with Oracle providing cloud services and ByteDance licensing its recommendation algorithms, while TikTok’s 170 million U.S. users migrate to the new platform. The U.S. values TikTok’s U.S. operations at $35–$40 billion, and Trump has extended ByteDance’s divestment deadline to December 16 as he and President Xi are expected to speak later this week to finalize the deal. 

For private equity investors, the talks present both risks and opportunities. De-escalation could stabilize global markets and reduce uncertainty in cross-border investments, particularly in technology and energy. However, unresolved disputes over oil and technology access underscore the fragility of the relationship, keeping geopolitical risk high as a key factor in investment decisions. President Trump and President Xi are expected to speak directly later this week to discuss framework agreements on these issues (Reuters, 2025). 

3. President Trump Sues The New York Times

President Trump has filed a defamation lawsuit against The New York Times, seeking $1.5 billion in damages. The suit alleges the newspaper knowingly published false information that damaged his reputation, particularly during his presidential campaign (NPR, 2025; Politico, 2025). Legal analysts note that, as a public figure, Trump must prove the paper acted with “actual malice,” a high legal standard in U.S. defamation law. 

The New York Times has stated the lawsuit is without merit and said it will defend its reporting and contest the case in court (NYT Company, 2025). The case is seen as part of Trump’s ongoing disputes with major media outlets, which he has frequently criticized inaccuracy (Washington Post, 2025). 

This is not the first time President Trump has pursued similar claims. He recently filed a $10 billion defamation suit against The Wall Street Journal over its reporting on controversial topics. Analysts view these lawsuits as part of a broader strategy to challenge media narratives (Time, 2025).