Why the Federal Reserve wants to avoid an aggressive rate cut

This NPR Planet Money Indicator podcast episode analyzes President Trump's call for a three-percentage-point cut to the base interest rate. The hosts and economists interviewed discuss the unlikelihood and potential negative consequences of such a drastic cut, including increased inflation and higher long-term interest rates for consumers, businesses, and the government. While acknowledging the desirability of lower long-term interest rates, the experts argue that using the Federal Reserve to force this outcome would undermine the Fed's independence and damage the economy. The discussion highlights the complexities of interest rate manipulation and the difference between short-term and long-term rates.