Trump Pressures Powell Again to Slash Fed Interest Rates by One Full Percentage Point

U.S. President Donald Trump continues to push for a reduction in Federal Reserve interest rates, criticizing Fed Chairman Jerome Powell for moving too slowly on lowering borrowing costs. “Europe has made 10 rate cuts; we’ve made none,” Trump wrote on Truth Social. He urged for a full percentage point cut and emphasized that the country is doing well despite Powell’s actions. Central banks usually limit rate changes to quarter-point adjustments. Trump stated that the Fed can always raise rates again if cuts lead to inflation. Trump has repeatedly criticized Powell for not reducing rates as he desires, even suggesting he’d like to see Powell leave the Fed but does not plan to fire him. During their first face-to-face meeting last week, Trump told Powell he was wrong not to cut rates. The Fed maintained interest rates at 4.25%-4.50% in May, where they have been since December, and policymakers have indicated they may keep them there for several more months while awaiting clarity on Trump’s trade policy.