On June 24, 2025, Trump posted on his social media platform "Real Social" that "Mr. Too Late" Federal Reserve Chairman Jerome Powell will explain to Congress today why he refuses to lower interest rates. Europe has cut interest rates 10 times, and we have zero times. No inflation, economic prosperity - we should reduce by at least 2 to 3 percentage points. It will save the United States $800 billion a year.
Since Trump took office in January, how many times has he urged Powell to cut interest rates? Why did Trump urge? Why didn't Powell cut interest rates?
On June 24, US President Trump posted on his social media platform "Real Social" that "Mr. Too Late" Federal Reserve Chairman Jerome Powell will explain to Congress today why he refuses to cut interest rates. Europe has cut interest rates 10 times, and we have zero times. No inflation, economic prosperity - we should reduce it by at least 2 to 3 percentage points. It will save the United States $800 billion a year.
On June 21, Trump posted on social media that "Mr. Too Late" Powell always complains about costs - most of these costs are caused by the Biden administration. The way he can make the greatest contribution to the United States at present is to decisively lower interest rates. If he can cut interest rates by one or two basis points, this "wooden head" can save the United States up to $1 trillion in spending every year. Although my strong criticism may make it more difficult for him to perform his duties (lowering interest rates), I have tried all moderate means: I have been polite, neutral, and tough, but unfortunately all of them failed! Don't use "there may be inflation risks in the future" as an excuse - because there is no inflation now! Even if it does appear in the future, it will be too late to raise interest rates then. I really don't understand why the Federal Reserve Board doesn't replace this complete idiot! Maybe I have to change my mind on whether to fire Powell. But don't rush, his term is coming to an end anyway!
On June 18, Trump said the United States had collected $88 billion from tariffs and there was "no inflation," again calling for lower interest rates. He said: "If the Fed cuts interest rates, we will buy U.S. debt at a lower price. But frankly, we have a stupid person at the Fed who may not cut interest rates today. He did a terrible job. We should cut interest rates by 200 basis points, and it would be even better if we could cut interest rates by 250 basis points. I intend to take a short-term strategy to lower interest rates significantly, and then switch to a long-term strategy."
On June 13, Trump said he did not intend to fire Federal Reserve Chairman Powell, but called him a "stupid" because he did not cut interest rates. In his speech, Trump said that a 200 basis point interest rate cut could save the United States $600 billion a year. Trump said: "We are spending $600 billion a year just because a 'idiot' sits here and says 'I don't see enough reason to cut rates now.'" Trump added that if inflation rises, he agrees with the Fed to raise interest rates, "but now that inflation is falling, I may have to do something."
On June 12, Trump pointed out: I will not fire Fed Chairman Powell, he just needs to lower interest rates, our inflation data is good. I once told Powell that there is no need to keep interest rates so high. If inflation appears within a year, raise interest rates.
On June 6, Trump said that Fed Chairman Powell should cut interest rates. The interest rate should be adjusted down by a full percentage point. Europe has cut interest rates ten times in a row, and we have not taken any interest rate cuts. The Fed's "Mr. Too Late" is a disaster.
On June 4, Trump posted on social media that the ADP data is out and "Mr. Too Late" Fed Chairman Powell must cut interest rates now. He is incredible. Europe has cut interest rates nine times.
On May 14, Trump posted on "Real Social" that there is no inflation, and the prices of gasoline, energy, groceries and almost all other commodities are falling! The Federal Reserve must lower interest rates like Europe and China. "Mr. Too Late" Powell, why are you still hesitating? This is unfair to the United States, which is preparing to prosper. Let everything take its course, and it will be a wonderful thing!
On April 23, Trump said at the swearing-in ceremony of Atkins, chairman of the U.S. Securities and Exchange Commission, that he had no intention of firing Federal Reserve Chairman Powell, although he was disappointed that the Federal Reserve did not cut interest rates faster. "Never," Trump told reporters, "The media always makes a mess of things. I don't intend to fire him. I hope to see him be more active in the idea of lowering interest rates." Trump said, "Grocery prices have fallen, everything is falling. The only thing that has not fallen but has not risen much is interest rates." Trump said, "We think the Federal Reserve should lower interest rates, and now is a perfect time. We hope that our chairman can (cut interest rates) ahead of time or on time, not late." Trump also said that the stock market has risen well.
On April 22, Trump said that if Federal Reserve Chairman Jerome Powell does not cut interest rates immediately, the country's economy may slow down. Trump posted on his social media platform on Monday that the decline in energy and daily necessities prices determined that "there will be almost no inflation." "But the economy may slow down unless the big rubbish Mr. Too Late cuts interest rates now," Trump once again used a derogatory term to refer to Powell.
On April 18, US President Trump delivered a speech at the White House, reiterating that Federal Reserve Chairman Powell should lower interest rates. He also said that the United States is very likely to reach an agreement with Ukraine. Federal Reserve Chairman Powell made it clear in a speech at the Chicago Economic Club a few days ago that he would not take emergency rescue measures due to market fluctuations. Powell's statement immediately attracted strong criticism from US President Trump.
On April 17, Trump once again put pressure on Powell, saying that Powell could be fired immediately and demanding that the Federal Reserve cut interest rates immediately.
April 4, Trump: Now is the best time for Fed Chairman Powell to cut interest rates. Fed Chairman Powell always acts too late. (Shout to Fed Chairman Powell) Cut interest rates, stop playing politics.
March 24, at the White House Cabinet meeting, Trump again urged the Fed to ease monetary policy.
March 19, Trump posted on "Real Social" that "the Fed had better cut interest rates" because the impact of US tariffs began to gradually penetrate the economy.
On February 12, Trump said that he believed that interest rates should be lowered and that a rate cut would complement the upcoming tariff policy.
On January 24, Trump said at the World Economic Forum in Davos, Switzerland, "As oil prices fall, I will ask for an immediate interest rate cut, and similarly, the whole world should cut interest rates."
According to Golden Finance statistics, Trump urged Powell at least 17 times. He also repeatedly called him "Mr. Too Late" and "Stupid" to express his dissatisfaction with Powell.
Offset the impact of tariff policies:The tariff policies implemented by Trump have led to an increase in the cost of imported goods, triggering imported inflation, and the US economy is facing the risk of increased inflation and slower economic growth. He hopes to "offset" the inflation caused by the tariff policy and ease economic pressure by cutting interest rates. Fortune once reported that Trump hopes to lower interest rates to "offset" the inflation caused by his own tariff policy. The Associated Press believes that Trump's tariff policy has increased the risk of a US recession, and Trump seems to want to put the blame on Powell.
Reduce government debt costs: U.S. Treasury data show that federal debt interest payments are huge and growing. In the past eight months, federal debt interest payments were about $776 billion. Compared with the same period of the previous fiscal year, it increased by 7%, and the interest burden in the previous fiscal year has climbed to the highest level since the 1990s. Trump believes that the Fed's interest rate cut can reduce the financing cost of government debt. For example, he claimed that a 2 percentage point interest rate cut can save $600 billion in interest costs each year. But economists warn that this move is likely to backfire. If interest rates are lowered when economic fundamentals do not require a rate cut, it may trigger inflation concerns. The reduction in demand for U.S. Treasury bonds will then further push up bond yields, thereby increasing the government's interest burden.
Stimulate economic growth: Interest rate cuts can usually increase market liquidity, stimulate corporate investment and consumer spending, and promote economic growth. Trump may think that the current US economic growth is facing certain pressures, and hopes to boost the economy by lowering interest rates to achieve his economic policy goals, such as promoting employment and improving corporate competitiveness, which will also help improve his support among voters.
Promoting stock market performance: Trump regards the performance of the US stock market as an important political achievement. Lowering interest rates can increase market liquidity, thereby stimulating credit expansion and asset price increases. The stock market will show a positive trend in the short term, which is beneficial to his voter support.
On June 19, Federal Reserve Chairman Powell said that although the Fed "can see that the labor market may be slowly and continuously cooling", considering the current strong labor force participation rate and good wage growth, this cooling is not worth worrying about. He said: "Although the uncertainty of the economic outlook has decreased, it is still at a high level." As long as he sees the current labor market situation, coupled with more reasonable economic growth and gradually falling inflation, Powell said he is willing to continue to wait for more information before deciding on the next move.
Data show that although GDP shrank by 0.3% quarter-on-quarter in the first quarter of 2025, the labor market performed strongly: the unemployment rate remained stable at a low level of 4.5%, and the hourly wage growth rate remained above 4%. Powell pointed out that "hard data" such as consumer spending and corporate investment still show that the economy is expanding at a rate of 1.5%-2%, which contrasts with the weakness of "soft indicators" such as manufacturing PMI. This structural contradiction has led the Federal Reserve to believe that the current economy has not yet fallen into recession and there is no need to stimulate demand by lowering interest rates.
Fed's Harker said that at a time when the U.S. financial system is facing growing challenges, the deficit must be controlled and he is "very worried" about the current government fiscal situation. Harker also said: "We are becoming increasingly blind in terms of key data. We are worried that the quality of economic data is declining. Uncertainty makes it very difficult to predict the outlook for monetary policy. But amid uncertainty, the Fed may still cut interest rates later this year."
Citi adjusted its forecast for the Fed's interest rate cut from July to September.
The U.S. labor market remains strong but is gradually cooling, said Jamie Cox, managing partner of Harris Financial Group. Given the significant revisions to the previous value of this non-farm report, I expect the Federal Reserve to restart the rate cut mode in July. Current wage levels are still stable, but they are likely to change in the coming months. The biggest variable in the job market is real estate - the property market has shown early risk signals, and the cooling of the labor market will exacerbate this trend.
Interest rate futures traders expect the Federal Reserve to cut interest rates twice this year, in September and December.
Franklin Templeton CEO: The Fed is expected to cut interest rates only once in 2025.
EY economist Gregory Daco said the Fed is expected to keep the benchmark interest rate unchanged at 4.25%-4.50%. The Fed's recent comments have reinforced a wait-and-see attitude, and officials have shown no urgency to adjust policy amid increased uncertainty in the economic outlook. The policy statement may not change much. The FOMC is likely to reiterate that inflation remains "a bit high," labor market conditions are "solid," and the unemployment rate is "stable at a low level." It may reiterate that "the risks of higher unemployment and higher inflation have increased," especially given the uncertainty in the economic outlook. The dot plot for median rate expectations is expected to remain unchanged, with two 25 basis point rate cuts by the end of the year. The dot plot is still expected to show a further 50 basis point cut to 3.4% in 2026 and another cut to 3.1% in 2027. Policymakers' median estimate of the long-term neutral rate is likely to remain unchanged at 3%.
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