Trump Demands Fed Slash Rates Now—Says Bold Cuts Will Supercharge US Economy

Former President turns up heat on central bank with urgent call for dramatic monetary easing.

Powell's Playbook Under Fire

Trump's latest broadside targets Fed caution—arguing timid policy jeopardizes America's competitive edge. 'We're being lapped by China while our bankers fiddle with spreadsheets,' the statement implied.

Market Realities vs. Political Theater

Wall Street's already pricing in cuts—but not the wholesale slashing Trump wants. The gambit? Force the Fed's hand before November elections. Because nothing says 'stable monetary policy' like election-year pressure campaigns.

Bonus jab: At least someone's finally demanding rate cuts for Main Street instead of just propping up overleveraged crypto hedge funds.

TLDR

• Donald Trump visited the Federal Reserve and urged Chair Jerome Powell to lower interest rates.
• He called for a 300-basis-point cut, stating it would help the U.S. stay competitive globally.
• Trump mentioned that Switzerland and the European Union already have significantly lower interest rates.
• He argued that the U.S. economy is strong, inflation is down, and the labor market remains solid.
• Trump denied any plans to fire Powell but said the Fed must act quickly to support growth.

U.S. President Donald TRUMP renewed his call for interest rate cuts during a visit to the Federal Reserve. He met with Chair Jerome Powell amid rising political and economic pressure over monetary policy decisions. The visit comes as expectations mount ahead of the July FOMC meeting, where the central bank is widely expected to hold rates steady.

Donald Trump Pressures Fed to Slash Rates by 300 Basis Points

Donald Trump directly urged Jerome Powell and the Federal Open Market Committee to implement a significant 300-basis-point rate cut. He cited global competition, noting that Switzerland’s interest rates are the lowest, standing at negative 0.50%. According to the president, the U.S. must match or beat global rates to maintain economic momentum.

He argued that such a rate move WOULD fuel faster economic expansion, describing it as potential “rocket fuel” for the economy. Trump claimed inflation has decreased, while employment remains strong, creating room for accommodative policy. He stressed that the Federal Reserve must act quickly, as other countries already benefit from lower rates.

Donald Trump also pointed out that the Fed made three rate cuts last year but none so far this year. He highlighted that the European Union has already taken action, suggesting the U.S. is lagging behind. He warned that failing to lower rates soon could harm America’s competitive edge in global markets.

Powell Faces Scrutiny Amid Renovation Controversy

The president’s visit also comes as Jerome Powell faces scrutiny over ongoing renovations at the central bank headquarters. Congresswoman Anna Paulina Luna recently referred Powell to the Department of Justice for alleged perjury concerning renovation cost disclosures, sparking rumors about Powell’s possible resignation.

Donald Trump’s visit raised speculation that he may be increasing pressure on Powell to either reduce rates or step aside. Reports earlier this week suggested Powell had resigned, but the Federal Reserve later confirmed those reports were false. The president denied any intention to dismiss Powell but said making such a MOVE would be significant.

Trump remarked that while he believes Powell has acted too slowly, he expects the Fed Chair to “do the right thing.” He emphasized that there is no formal pressure, though he believes consensus now favors lower rates. Trump insisted the market and even previous advocates of higher rates now support monetary easing.

Market Awaits Fed Decision as July Meeting Nears

Despite Donald Trump’s push, the Federal Reserve is widely expected to keep rates unchanged during the July FOMC meeting. CME FedWatch data currently indicates a 97.4 percent probability that rates will remain between 4.25 percent and 4.5 percent. Investors await Powell’s official commentary following the meeting’s conclusion.

While Trump pushes for DEEP cuts, Fed officials remain divided on the appropriate timing and size of future policy moves. San Francisco Fed President Mary Daly recently suggested that two rate cuts this year could be reasonable. She also stated that Trump’s tariff policies have had limited impact on inflation.