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Trump Escalates Criticism of Fed’s Powell, Calls for Interest Rate cuts
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President Donald Trump has ramped up his attacks on Federal Reserve Chair Jerome Powell, pushing for ample interest rate reductions.
by [Invented Reporter] | WASHINGTON – 2025/06/12 16:18:33
US Federal Reserve Chair Jerome Powell waits to speak during a conference marking the 75th anniversary of the International Finance Division of the Federal Reserve Board in Washington, DC, on June 2, 2025.
Andrew Caballero-Reynolds | AFP | Getty Images
President Donald Trump has intensified his criticism of Federal reserve Chair Jerome Powell, labeling him a “numbskull” for not lowering interest rates. The President argues that significant rate cuts would substantially reduce the nation’s financial burden.
Speaking at the White house, Trump asserted that a two-percentage-point reduction in interest rates would save the U.S. $600 billion annually. He expressed frustration that Powell has not implemented such cuts.
“We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now,'” Trump stated.
Trump indicated he would support the Fed raising rates if inflation were increasing. However, he noted that inflation is currently down, suggesting he might “force something” to prompt action.
Trump’s remarks followed a Labor Department report indicating that U.S. producer prices increased less than expected in May. This, coupled with other recent economic data, has eased concerns about a potential inflation surge due to tariffs, emboldening Trump and his allies to pressure the fed.
Administration Officials Join the Criticism
“It’s astonishing how much we would save if [Powell] did his job and he cut interest rates.”
Trump’s recent criticism marks the third instance in two days where a member of his administration has publicly targeted the central bank leader.Commerce Secretary Howard Lutnick stated on Wednesday night, “It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates.”
“The economy is ready for it. It’s easy. Inflation is low,” Lutnick said on Fox News. “come on. He’s got to do his job soon.”
Earlier on Wednesday,Vice President JD Vance wrote in a social media post that “the refusal by the Fed to cut rates is monetary malpractice.”
Market reaction to Trump’s comments was muted,as they continue his ongoing efforts to brand Powell with the moniker “Too Late.”
Currently,traders foresee minimal likelihood of the Fed cutting rates at its upcoming meeting and only a slight chance at the July gathering. However, expectations for a rate cut in September have increased, with odds at approximately 76% on Thursday, up from 69% the previous day, according to CME Group data.
frequently Asked Questions
Why does President Trump want the Fed to cut interest rates?
President Trump believes that lower interest rates will stimulate economic growth, reduce the national debt, and make American businesses more competitive globally.
What factors does the Federal Reserve consider when setting interest rates?
The Federal Reserve considers various factors, including inflation, employment rates, economic growth, and global economic conditions, to maintain stable prices and maximum employment.
How do interest rate decisions impact the stock market?
Interest rate decisions can considerably impact the stock market. Lower interest rates can make borrowing cheaper for companies, encouraging investment and potentially boosting stock prices, while higher rates can have the opposite effect.
