Haciyev Reşit 
Following the U.S. Federal Reserve’s decision to cut interest rates by 25 basis points, as widely expected, President Donald Trump made striking comments on the economy and monetary policy. Speaking immediately after the announcement, Trump delivered bold messages regarding both the Fed’s current policy stance and the future of the American economy.
Trump: “This Cut Is Insufficient Our Economy Has Much Greater Potential”
Calling the Fed’s 25 basis point rate cut “far too small”, Trump argued that the U.S. economy is much stronger than current indicators suggest. The President stated that the reduction does not reflect the nation’s true growth potential, stressing that interest rate adjustments should be made faster and more boldly. Emphasizing the need for a more aggressive pace of monetary easing, Trump said:
“The U.S. has much greater potential. We can achieve far better results than conventional data indicates.”
Arguing that the U.S. can achieve strong growth without generating inflation, Trump raised his economic targets considerably. Claiming that the economy’s real capacity is stronger than official data show, he made a striking statement on GDP growth:
“Growth of 3% or 4% is easily achievable. In fact, why not 20% or 25% GDP growth?”
“The Fed Could Have Doubled the Rate Cuts”
Trump reiterated that the Fed’s rate reduction was insufficient. He argued that monetary policy should be eased more strongly and more broadly, stating that the current move is not enough to support the nation’s true economic potential:
“The Fed could have easily doubled the rate cuts. The current administration is not fully taking advantage of growth opportunities.”
With these remarks, Trump once again criticized Fed Chair Jerome Powell. He argued that Powell’s leadership is failing to utilize the country’s growth potential and that monetary policy requires bolder steps.
An Optimistic View on the Economy and Markets
Despite his criticisms, Trump adopted an optimistic tone regarding financial markets. He said:
“The market should continue rising and deliver extraordinary results.”
Trump also referenced international comparisons, recalling that Switzerland was once able to borrow at almost zero cost, and noting that today it pays at what he described as “more reasonable levels.” With this example, he emphasized that countries’ monetary policies evolve over time, producing vastly different economic outcomes.
Assessment
Trump’s remarks following the Fed’s decision show that debates over monetary policy in the U.S. are gaining momentum once again. While the President argues that the rate cut is insufficient and that a more aggressive strategy could accelerate growth, the Fed maintains a controlled and gradual approach. Trump’s ambitious growth targets have sparked wide discussion in economic circles. In the coming period, markets will closely watch how the gap between Fed policy actions and White House expectations develops.
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