Trump Demands Fed Slash Rates by 3 Points as Powell Holds Firm

President Donald TRUMP has escalated his pressure campaign on Federal Reserve Chair Jerome Powell, calling for an immediate 3 percentage point reduction in interest rates. The public broadside, delivered via Trump's Truth Social platform, claims current policy costs the U.S. $360 billion annually per point in excessive refinancing expenses.

The Fed's overnight rate stands at 4.33% as markets price a 95% chance of policymakers maintaining their stance this month according to Polymarket data. Trump argues rapid cuts could save Americans $800 billion, framing the economy as inflation-free and booming with corporate investment.

This marks the latest chapter in Trump's years-long critique of Fed independence, particularly since the tariff wars began straining government finances. With Powell's term extending until 2026, the former president appears to have limited options beyond rhetorical pressure for now.