Analysis-There’s a reason Trump is the only one talking about 1% interest rates

President Donald Trump has repeatedly demanded that the US Federal Reserve slash interest rates to 1%, despite the impracticality and potential negative consequences of such a policy. Analysts argue that a 1% interest rate would cause significant disruptions in the global financial system, with the US government paying more to borrow than it does now.

J. Benson Durham, founder of DASM investment research firm, believes that such a drastic cut would result in higher Treasury rates due to investors factoring in higher inflation. Countries like Germany could also attract more capital by offering slightly better rates, leading to a plummeting dollar. Trump's interest rate demands are likely a way to divert attention from high consumer prices ahead of the midterm elections in November.

However, the White House has not commented on these remarks, nor has the Fed responded to requests for comment.