Original title: "How many times has Trump called on Powell to cut interest rates? Why didn't Powell do so?"
Original author: Deng Tong, Golden Finance
On June 24, 2025, Trump posted on his social media platform "Real Social" that "Mr. Too Late" Federal Reserve Chairman Jerome Powell will explain to Congress today why he refuses to lower interest rates. Europe has cut interest rates 10 times, and we have zero times. No inflation, economic prosperity - we should reduce at least 2 to 3 percentage points. It will save the United States $800 billion a year.
How many times has Trump urged Powell to cut interest rates since he took office in January? Why did Trump urge Powell to do so? Why didn't Powell cut interest rates?
1. How many times did Trump urge Powell?
On June 24, US President Trump posted on his social media platform "Real Social" that "Mr. Too Late" Federal Reserve Chairman Jerome Powell will explain to Congress today why he refuses to lower interest rates. Europe has cut interest rates 10 times, and we have zero. No inflation, economic prosperity - we should reduce at least 2 to 3 percentage points. It will save the United States $800 billion a year.
· On June 21, Trump posted on social media that "Mr. Too Late" Powell always complains about costs - most of which are caused by the Biden administration. The way he can make the greatest contribution to the United States at present is to decisively lower interest rates. If he can cut interest rates by one or two basis points, this "wooden head" can save the United States up to $1 trillion in spending each year. Although my strong criticism may make it more difficult for him to perform his duties (lowering interest rates), I have tried all moderate means: I have been polite, neutral, and tough, but unfortunately all of them have failed! Don't use "there may be inflation risks in the future" as an excuse - because there is no inflation at all now! Even if it does appear in the future, it will be too late to raise interest rates by then. I really don't understand why the Federal Reserve Board doesn't replace this complete idiot! Maybe I have to change my mind on whether to fire Powell. But don't worry, his term is coming to an end anyway!
On June 18, Trump said the U.S. had collected $88 billion from tariffs and there was "no inflation," and again called for lower interest rates. He said: "If the Fed cuts interest rates, we will buy U.S. bonds at a lower price. But frankly, we have a stupid person at the Fed who probably won't cut interest rates today. He's doing a terrible job. We should cut interest rates by 200 basis points, and it would be even better if we could cut interest rates by 250 basis points. I intend to take a short-term strategy first, lower interest rates significantly, and then switch to a long-term strategy."
On June 13, Trump said he did not plan to fire Federal Reserve Chairman Powell, but called him a "stupid" because he did not cut interest rates. Trump said in a speech that a 200 basis point interest rate cut could save the United States $600 billion a year. Trump said: "We are spending $600 billion a year just because a "stupid" sits here and says "I don't see enough reason to cut interest rates now." Trump added that if inflation rises, he agrees with the Fed to raise interest rates, "but now that inflation is falling, I may have to do something."
On June 12, Trump pointed out: I will not fire Fed Chairman Powell, he just needs to lower interest rates, our inflation data is good. I once told Powell that there is no need to keep interest rates at such a high level, if inflation appears within a year, raise interest rates.
On June 6, Trump said that Fed Chairman Powell should cut interest rates. The interest rate should be lowered by a full percentage point. Europe has cut interest rates ten times in a row, and we have not taken any interest rate cut measures. The Fed's "Mr. Too Late" is a disaster.
On June 4, Trump posted on social media that the ADP data was out and that "Mr. Too Late" Fed Chairman Powell must cut interest rates now. He was incredible, and Europe had already cut interest rates nine times.
On May 14, Trump posted on "Real Social" that there is no inflation, and the prices of gasoline, energy, groceries and almost everything else are falling! The Fed must lower interest rates like Europe and China. "Mr. Too Late" Powell, why are you still hesitating? This is not fair to the United States, which is preparing to prosper. Let everything take its course, it will be a beautiful thing!
On April 23, Trump said at the swearing-in ceremony of SEC Chairman Atkins that he had no intention of firing Federal Reserve Chairman Powell, although he was disappointed that the Fed did not cut interest rates faster. "Never," Trump told reporters, "The media always makes a mess of things. I have no intention of firing him. I hope to see him be more active in the idea of lowering interest rates." Trump said, "Grocery prices have fallen, everything is falling. The only thing that has not fallen but has not risen much is interest rates." Trump said, "We think the Federal Reserve should lower interest rates, and now is a perfect time. We hope that our chairman can (cut interest rates) ahead of time or on time, not late." Trump also said that the stock market has risen well.
On April 22, Trump said that if Federal Reserve Chairman Jerome Powell does not cut interest rates immediately, the country's economy may slow down. Trump posted on his social media platform on Monday that the decline in energy and daily necessities prices determines that "there will be almost no inflation." "But the economy may slow down unless the big jerk Mr. Too Late cuts interest rates now," Trump said, again using a derogatory term to refer to Powell.
On April 18, US President Trump delivered a speech at the White House, reiterating that Federal Reserve Chairman Powell should lower interest rates. He also said that the United States is very likely to reach an agreement with Ukraine. Federal Reserve Chairman Powell made it clear in a speech at the Chicago Economic Club that he would not take emergency rescue measures due to market fluctuations. Powell's statement immediately attracted strong criticism from US President Trump.
On April 17, Trump again put pressure on Powell, saying that Powell could be fired immediately and demanding that the Federal Reserve cut interest rates immediately.
April 4, Trump: Now is the best time for Fed Chairman Powell to cut interest rates. Fed Chairman Powell always acts too late. (Shout to Fed Chairman Powell) Cut interest rates and stop playing politics.
On March 24, at a White House cabinet meeting, Trump again urged the Federal Reserve to ease monetary policy.
On March 19, Trump posted on Facebook that the “Fed would be better off cutting rates” as the impact of U.S. tariffs began to filter through the economy.
On February 12, Trump said he believed interest rates should be lowered and that such a cut would go hand in hand with the upcoming tariff policy.
On January 24, Trump said at the World Economic Forum in Davos, Switzerland, "With the drop in oil prices, I will be calling for an immediate rate cut, and similarly, the entire world should be cutting interest rates."
According to Golden Finance statistics, Trump urged Powell at least 17 times, and repeatedly called him "Mr. Too Late" and "Stupid" to express his dissatisfaction with Powell.
2. Why is Trump in a hurry to cut interest rates?
Offsetting the impact of tariff policies: Trump’s tariff policies have led to higher costs for imported goods, triggering imported inflation, and the U.S. economy faces the risk of increased inflation and slower economic growth. He hopes to “offset” the inflation caused by tariff policies and ease economic pressure by lowering interest rates. Fortune once reported that Trump hopes to lower interest rates to “offset” the inflation caused by his own tariff policies. The Associated Press believes that Trump’s tariff policies have increased the risk of a U.S. recession, and Trump seems to want to put the blame on Powell.
· Reduce government debt costs: Data from the U.S. Treasury Department shows that interest payments on federal debt are huge and growing. In the past eight months, federal debt interest payments were about $776 billion. This is a 7% increase compared to the same period last fiscal year, when the interest burden had already climbed to its highest level since the 1990s. Trump believes that the Fed's interest rate cuts can reduce the financing costs of government debt. For example, he claimed that a 2 percentage point interest rate cut would save $600 billion in interest costs each year. But economists warn that this move is likely to backfire. If interest rates are lowered when economic fundamentals do not require a rate cut, it may trigger inflation concerns. The reduction in demand for U.S. Treasuries will then further push up bond yields, thereby increasing the government's interest burden.
Stimulate economic growth: Interest rate cuts can usually increase market liquidity, stimulate corporate investment and household consumption, and promote economic growth. Trump may believe that the current US economic growth is facing certain pressures and hopes to boost the economy by cutting interest rates to achieve his economic policy goals, such as promoting employment and improving corporate competitiveness, which will also help improve his support among voters.
· Promote stock market performance: Trump regards the performance of the U.S. stock market as an important political achievement. Lowering interest rates can increase market liquidity, thereby stimulating credit expansion and asset price increases. The stock market will show a positive trend in the short term, which is beneficial to his voter support.
3. Why doesn’t Powell cut interest rates?
On June 19, Fed Chairman Powell said that although the Fed "can see that the labor market may be cooling slowly and continuously", this cooling is not worth worrying about considering the current strong labor force participation rate and good wage growth. He said: "Although the uncertainty of the economic outlook has declined, it is still at a high level." As long as he sees the current labor market conditions, coupled with more reasonable economic growth and gradually declining inflation, Powell said he is willing to continue to wait for more information before deciding on the next move.
Data show that although GDP shrank by 0.3% quarter-on-quarter in the first quarter of 2025, the labor market performed strongly: the unemployment rate remained stable at a low level of 4.5%, and the hourly wage growth rate remained above 4%. Powell pointed out that "hard data" such as consumer spending and corporate investment still show that the economy is expanding at a rate of 1.5%-2%, which contrasts with the weakness of "soft indicators" such as manufacturing PMI. This structural contradiction has led the Federal Reserve to believe that the current economy has not yet fallen into recession and there is no need to stimulate demand by cutting interest rates.
4. What do others think about the Fed’s interest rate cut?
Support for rate cuts:
US Vice President Vance: The Fed’s refusal to cut interest rates is a monetary policy misconduct.
Fed's Goolsbee said the lack of clear inflationary pressures since Trump imposed tariffs on April 2 could allow the Fed to resume cutting interest rates.
"If inflation pressures are contained, I would support lowering the policy rate as soon as possible at the next meeting to move it closer to neutral and sustain a healthy labor market," said Fed Governor Bowman.
· U.S. Commerce Secretary Lutnick said the United States is the greatest country in the world, yet it has to bear the highest interest rates of all the top countries. Our Fed Chairman is apparently afraid of his own shadow. What was really sad about Powell's comments was his claim that tariffs have led to "prices rising in some related categories, such as personal computers." You'd think Powell would know there are no tariffs on personal computers. Not yet. Tariffs on semiconductors and computers will be announced after the Commerce Department completes its analysis. These high rates make no sense.
Federal Housing Finance Agency Director Pulte: Fed Chairman Powell must cut interest rates immediately.
Not support rate cut:
Fed's Barkin said that current data shows there is no urgent reason to cut interest rates, the job market and consumption remain strong, the final direction of trade policy has not yet been determined, and it is unclear how it will affect prices and employment; companies expect to raise prices later this year as more pricier imported goods have entered their inventories; companies not affected by tariffs see the confusion in trade policy as an opportunity to raise prices.
Ray Dalio, founder of Bridgewater Associates: The Fed is in a difficult situation and should not cut interest rates.
5. Prediction of the timing of the Fed’s interest rate cut
· Fed's Harker said that the deficit must be controlled at a time when the U.S. financial system faces growing challenges, and he is "very concerned" about the current government fiscal situation. Harker also said: "We are becoming increasingly blind in terms of key data. We are concerned that the quality of economic data is declining. Uncertainty makes it very difficult to predict the outlook for monetary policy. But amid uncertainty, the Fed may still cut interest rates later this year."
· Citigroup adjusted its forecast for a Fed rate cut from July to September.
Jamie Cox, managing partner of Harris Financial Group, said that the U.S. labor market remains strong but is gradually cooling. Given the significant revisions to the previous value of this non-farm report, I expect the Fed to resume interest rate cuts in July. The current salary level is still stable, but it is likely to change in the coming months. The biggest variable in the job market is real estate - the property market has shown early risk signals, and the cooling of the labor market will exacerbate this trend.
Interest rate futures traders expect the Federal Reserve to cut interest rates twice this year, in September and December.
Franklin Templeton CEO: The Federal Reserve is expected to cut interest rates only once in 2025.
· The Federal Reserve is expected to keep its benchmark interest rate unchanged at 4.25%-4.50%, said Gregory Daco, an economist at EY. Recent comments from the Fed have reinforced a wait-and-see approach, with officials showing no urgency to adjust policy amid increased uncertainty about the economic outlook. The policy statement may not change much. The FOMC is likely to reiterate that inflation remains "a bit elevated," labor market conditions are "solid," and unemployment is "stable at low levels." It is likely to reiterate that "the risks of higher unemployment and higher inflation have increased," especially given the uncertainty about the economic outlook. The dot plot for median interest rate expectations is expected to remain unchanged, with two 25 basis point rate cuts by the end of the year. The dot plot is still expected to show a further 50 basis point rate cut to 3.4% in 2026 and another rate cut to 3.1% in 2027. Policymakers' median estimate of the long-term neutral interest rate is likely to remain unchanged at 3%.
