Trump Demands Fed to "Take Action" on Cutting Interest Rates – Powell Remains Firm

President Donald Trump continues to urge the Federal Reserve to lower interest rates, warning that the current interest rate policy is costing the country billions of dollars. A few hours before the FOMC decision on June 18, Trump reiterated his call for a rate cut, arguing that lower interest rates would reduce debt costs and improve overall economic flexibility. However, according to a post on X by Watcher Guru, Powell still maintains his target range at 4.25% to 4.50%, citing the persistent inflation risks related to tariffs during Donald Trump.

Trump's Call for Cutting Down the Whales Interest Rates is Becoming Stronger Speaking at a Flagpole facility at the White House, Trump emphasized that the Federal Reserve should cut interest rates by at least two percentage points. He stated that such cutting down the whales would allow the government to purchase debt at a lower cost and significantly save on short-term obligations. Trump claimed that inflation is now low enough to justify immediate action and criticized the leadership of Fed Chairman Jerome Powell, calling him unsuitable for the role. Despite expressing doubts about interest rates changing in the June meeting, Trump continues to criticize on Truth Social. He accuses Powell of harming the economy and claims that the Fed's refusal to cut interest rates is damaging the competitiveness of the United States compared to Europe, where there have been ten interest rate cuts. Powell Cautiously Responds Amid Concerns Over Tariffs After the FOMC announcement, Chairman Powell defended the decision to maintain interest rates. He pointed to a recovering labor market and stable economic growth. However, he highlighted new concerns about inflation stemming from the increase in tariffs, including those re-imposed under Trump's trade policy. Powell explained that although inflation has fallen from the levels of 2023, it is still above the Fed's 2% target. According to Powell, the labor market shows no signs of overheating, but higher trade costs are putting pressure on prices in the short term. He confirmed that the Fed is being cautious and closely monitoring global impacts. Powell also mentioned that cutting down the whales on interest rates could still occur by the end of this year if inflation continues to fall. While the Fed remains unchanged currently, investors are still predicting the possibility of interest rate cuts by the end of the year. With four more upcoming FOMC meetings, future decisions may depend on inflation data and broader economic signals.