US President Donald Trump has repeatedly targeted Federal Reserve Chair Jerome Powell, urging a massive 2.5-point interest rate cut. Despite appointing Powell in 2017, Trump has criticized the Fed chair for maintaining rates higher than he prefers.
The Fed maintains that rates will remain between 4.25% and 4.5%, citing strong economic growth but uncertain inflation paths partly due to Trump’s tariffs on foreign goods. In a post on Truth Social, Trump claimed Powell is “costing our Country Hundreds of Billions of Dollars” and described him as “dumbest and most destructive.”
However, Fed Chairman Powell remains focused on the Fed’s mandate to keep inflation low and job growth high. He emphasized that the policy stance is well-positioned for delivering a good economy with strong labor markets and price stability.
In economic projections, Fed members expect two quarter-point rate cuts this year, which would bring rates down to around 3.75% to 4%. Despite US inflation remaining low, Powell warned that prices may increase in coming months due to the impact of tariffs on goods distribution.
The European Central Bank has already lowered rates eight times in the past year, leading Trump to claim that the US should also make significant rate cuts to save billions on short-term debt. However, Fed Chairman Powell remains cautious, citing uncertain effects from tariffs and a need for more data before adjusting rates.
Source: https://edition.cnn.com/2025/06/19/economy/trump-fed-rate-cut