{
  "id": 9093152,
  "title": "[Column] The market rejected Trump's pressure tactics",
  "url": "https://urgent.news/2026/09/22/column-the-market-rejected-trumps-pressure-tactics",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T03:55:40.000Z",
  "source": {
    "name": "Hankyoreh",
    "slug": "hankyoreh",
    "url": "https://www.hani.co.kr/arti/english_edition/e_editorial/1279061.html"
  },
  "original_language": "en",
  "account": "The US Federal Reserve raised its benchmark interest rate, but President Donald Trump's attempts to intervene were unsuccessful. This move comes just six weeks before the midterm elections, and the Federal Reserve's decision to raise rates is seen as a negative factor for the elections. While the Fed appeared to withstand political pressure, the hike was more about catching up with market rates that had already been raised. The 10-year Treasury yield surged past 5% to reach a 19-year high. Had the Fed held steady, the market would have questioned its independence and commitment to fighting inflation, leading to an even steeper rise in rates. Over the past few decades, central banks have set interest rates while communicating with financial markets on inflation, growth, and employment, all while maintaining the appearance that rate decisions are independent of politics. However, in the current era of weakened norms, narrow-minded leadership is disrupting economics, a field that relies on rationality. Trump has pressured the Fed to freeze or cut interest rates, but his arguments amount to a barrage of unfounded claims. He believes that the US economy is strong and should have the lowest interest rates in the world. This approach treats monetary policy like a loan, rather than an economic tool. Several Trump allies, including Vice President JD Vance and House Speaker Mike Johnson, have made similar claims. This persistence in making false statements since Trump's first term hints at their intentions. In the post-truth era, words often lose their truth value, and Trump's calls for rate cuts can be seen as \"economic bullshit.\" His rhetoric extends beyond monetary policy, as he now claims the US has the \"greatest economy\" to justify loosening his administration's spending. He promises a \"Trump dividend\" of $5,000 per adult if the Republican Party retains its majorities in both the House and Senate during the midterm elections. However, securing the $1.2 trillion needed for this promise is unrealistic, and monetary easing combined with massive fiscal stimulus could cause inflation to spiral out of control. Trump also claims that American consumers bear no costs from tariffs, which he believes China pays \"billions of dollars\" to the US. In reality, these costs are largely passed on to Americans. The Federal Reserve Bank of New York's report from February found that 94% of these costs were borne by US companies and consumers in the first eight months of Trump's second term. Trump has also suggested that lowering interest rates would stop trading with countries with deficits, but he offers no explanation for this link between monetary policy and trade deficits. This perspective stems from his view of trade as a zero-sum game, ignoring the connection between trade deficits and capital account surpluses. Trump is not the only leader to misuse his power to suppress economic principles. Turkish President Recep Tayyip Erdoğan pressured his central bank to lower rates, leading to inflation skyrocketing past 85% annually. After Turkey paid a heavy price, Erdoğan raised the benchmark interest rate to a 20-year high in September 2023. When neoliberalism dominated the globe, economics was seen as the king of disciplines, with a set of market-oriented policies known as the Washington Consensus guiding governments worldwide. However, Trump's actions now threaten this intricate framework. The US system is holding up, with the Fed and the bond market responding to Trump's economic \"bullshit\" through market pricing rather than arguments. The unconventional tactic of the wooden horse may be what brings down the walls of this crumbling system.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Hankyoreh",
        "title": "[Column] The market rejected Trump's pressure tactics",
        "url": "https://urgent.news/2026/09/22/column-the-market-rejected-trumps-pressure-tactics-9097933",
        "published": "2026-09-22T04:28:41.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}