Trump Pressures Fed Chairman Powell Again, Calls for 1% Rate Cut
U.S. President Donald Trump has once again pressured the Federal Reserve (Fed), criticizing its slow actions as a "disaster" and urging a 1% rate cut. With the May nonfarm payroll report exceeding expectations, Trump took to his social media platform, Truth Social, to reiterate calls for the Fed to lower rates to fuel the economy. He mentioned that Europe has already cut rates ten times while the U.S. has not made any cuts. Trump emphasized that a rate cut would greatly reduce government borrowing costs, stating, "There is practically no inflation right now." Additionally, he asserted that if inflation returns in the future, they could simply raise rates then. According to CNBC, traders originally expected the Fed to cut rates in September, but the likelihood dropped following the release of the nonfarm payroll data, although 62% still bet on a September cut.
