Trump Intensifies Pressure on Fed for Aggressive Rate Cuts Amid Mixed Inflation Signals

Former President Donald TRUMP is escalating his campaign against the Federal Reserve, demanding immediate and deeper rate cuts to counter what he calls Jerome Powell's 'too late' approach. Trump cites a $3 billion Fed headquarters renovation—which he claims should have cost $50 million—and recent inflation data as justification for faster action. Markets are pricing in a September cut, but Trump insists the move should be more aggressive.

July's CPI report paints a nuanced picture: headline inflation cooled to 2.7% year-over-year, while Core inflation (excluding food and energy) remained stubborn at 3.1%. The divergence between surging services prices and subdued goods inflation has split Fed officials, with some seeing room for easing and others fearing premature cuts could rekindle price pressures.

The rate cut argument gains traction as weak jobs data emerges. Scott Bessent, Trump-era Treasury official, advocates for a bold 50-basis-point reduction—a move that could Ripple through risk assets including cryptocurrencies. Market participants now watch September's FOMC meeting as a potential inflection point for monetary policy and digital asset valuations.