‘Europe Has Had 10 Cuts, US Has Had Zero': Trump Urges Fed To Cut Interest Rates
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Donald Trump criticized Federal Reserve Chair Jerome Powell on Truth Social for not lowering interest rates, calling him "very dumb" and urging Congress to act.
US President Donald Trump took to Truth Social on Monday morning to criticize Federal Reserve Chair Jerome Powell for not lowering interest rates, calling him a 'very dumb, hardheaded person" and urging Congress to take action against him.
In a strongly worded post, Trump wrote that Powell was scheduled to appear before Congress today to explain 'why he is refusing to lower the Rate." The president pointed out that while Europe has already made ten rate cuts, the US has had 'ZERO," despite what he described as 'no inflation" and a 'great economy."
'We should be at least two to three points lower," Trump stated, arguing that such a move would save the US government an estimated $800 billion annually.
He emphasized the financial and economic benefits of rate cuts, warning that if economic conditions worsen, increasing the rate later could cause more harm than good.
Trump, who has long criticized Powell during and after his presidency, said, 'I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come." He ended the post with a rallying cry: 'THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!
The president's latest tirade against Powell comes as he keeps up his calls for lower US interest rates, largely in contrast to the cautious stance put forward by the Fed.
The central bank had last week kept interest rates steady, with Powell warning that Trump's tariffs could increase inflation and give the central bank even less impetus to cut rates further.
The central bank cut interest rates by a total of 1% in 2024, but flagged a largely cautious stance on cutting rates in 2025 and 2026.
Last week, Trump had criticized Federal Reserve Chairman Jerome Powell, questioning why the Fed Board doesn't override him. In a detailed post on Truth Social, Trump remarked, 'Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his term ends shortly."
Meanwhile, Federal Reserve Governor Michelle Bowman said on Monday that the Fed should consider cutting its key interest rate at the upcoming July meeting. Her remarks signal growing internal divisions among Fed officials, especially as they face mounting pressure from the White House.
Bowman observed that President Trump's tariffs have not led to the expected inflation surge, contrary to many economists' forecasts. She suggested that any future price hikes are likely to be temporary.
'It is likely that the impact of tariffs on inflation may take longer, be more delayed, and have a smaller effect than initially expected," Bowman said in a speech in Prague. She added, 'Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting," scheduled for July 29–30.
Bowman, appointed to the Fed board in 2018 under Trump, is now the second official to support a July rate cut within days, highlighting growing momentum for easing policy amid global economic uncertainties.
First Published:
June 24, 2025, 11:49 IST
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