Lower interest rates might just push up existing asset prices pushing inflation. This might be why the Fed is cautious.

If Federal Reserve Chairman Jerome Powell were to push for lower interest rates, it would likely push up the values of assets; such as stocks and real estate. This could inflate costs; such as housing costs. That is one reason why he is resisting pressure from Trump.

Another thing I heard, on a talk show, is that lower interest rates, for US bonds, would make them less popular, making it harder for the government to finance debt by selling bonds. It might have to resort to creating new money, also inflationary. The Bond Market can be a check on Trump.

Time to mention my idea of having two interest rates; a lower one for creating new wealth, such as for construction loans and a higher one for buying up already existing assets.