Trump Calls for Interest Rate Cuts, Backs Down on Criticism of Powell

US President Donald Trump has once again demanded that the Federal Reserve lower interest rates, but this time also acknowledged that his previous criticism of Fed Chair Jerome Powell may have made it harder for him to do so.

In a social media post, Trump called Powell a “numbskull” and claimed that his strong criticism of the chairman had prevented rate cuts in the past. However, he added that “nice and neutral” approaches also didn’t work.

The comments come as Fed Governor Christopher Waller has expressed support for interest rate cuts as soon as July, citing signs of a deteriorating labor market.

Waller’s views on the labor market are significant for the Fed, as a drop-off in hiring and an uptick in unemployment could prompt the central bank to lower rates.

Despite Trump’s earlier criticism of Powell, Waller does not support immediate rate cuts, saying that the Fed should “start slow.”

Trump had previously said that he would announce his pick for Fed Chair within weeks, potentially naming a new chairman before Powell’s term ends in May 2026.

The Fed’s dual mandate is to maximize employment and stabilize prices, and recent data suggests inflation has been relatively tame despite Trump’s tariffs.

However, Waller notes that the labor market may be starting to soften more than expected, making it necessary for the Fed to act sooner rather than later.

Source: https://edition.cnn.com/2025/06/20/economy/fed-governor-rate-cut-july