Trump described Fed Chair Jerome Powell as “too late and a disaster.” He demanded that the current 4.25% – 4.50% rate range be lowered to 3.25% – 3.50%, claiming such a move would act as “rocket fuel” for the economy. Despite indecisiveness among Powell and FOMC members, Trump continues to pressure the U.S. Central Bank for rate cuts. 

He pointed to the European Central Bank (ECB), which has lowered rates 10 times this year. Most recently, on June 5, the ECB cut its benchmark rate by 25 basis points to 2%. Trump emphasized that the Fed has not taken a single step so far. According to CME FedWatch data, the probability of rates remaining unchanged at the June meeting stands at 99.9%, indicating that a rate cut is unlikely in the short term. The Fed’s last rate cut was in March 2020, aimed at easing economic distress caused by the COVID-19 pandemic. 

“Europe cut rates 10 times, and we haven’t done it even once (despite Powell). Our country is doing great. Go for a full point cut!” 

“Cut Rates, Raise Again If Needed” 

Trump reiterated his call for rate cuts on Truth Social. He stated that the Fed should reduce rates and, if inflation returns, raise them again. He also targeted the Biden administration, criticizing its preference for short-term borrowing. According to Trump, there is “virtually no inflation” at present. 

He argued that keeping rates high brings significant costs to the country. A rate cut, he said, would reduce both long- and short-term debt burdens. For this reason, he urged the Fed to act without further delay. 

According to the May FOMC minutes, the Fed is not in a hurry to cut rates. The committee will continue to monitor the economic impact of tariffs implemented under Trump’s administration. 

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