Why the US Federal Reserve may be Trump’s next target

Interest rates in the world’s largest economy are heading down. Maybe not today, and maybe not tomorrow, but soon, and for the rest of this year (at least). Why? Because there are very good reasons for the US Federal Reserve, which controls short-term interest rates — that’s how it makes monetary policy — to start reversing the sharp rate hikes it carried out beginning in March 2022. There’s a vigorous debate about whether those rate hikes were excessive, which I’m not going to litigate here. Whatever you think about past policy, the case for cuts going forward is very strong, and I hope the Fed will act on that case. Former US…