US President Donald Trump has escalated his pressure on Federal Reserve Chairman Jerome H. Powell, accusing him of costing the country “a fortune” and demanding lower interest rates. In a handwritten note, Mr. Trump urged Powell to cut rates “by a lot,” citing potential savings of “hundreds of billions of dollars.”
The criticism comes amid months of attacks by Mr. Trump on Powell’s monetary policy decisions. The president has threatened to fire Powell and even encouraged him to resign before his term expires in May. Mr. Trump has also floated the idea of appointing a new Fed chair, which could complicate communications between the White House and the central bank.
Powell faces pressure from Republicans pushing for tax cuts that would sharply raise the federal deficit, forcing more money to be earmarked for interest payments on debt. Mr. Trump seeks a 2.5-percentage-point reduction in interest rates, below the current level of 4.25-4.5 percent.
Despite Powell’s efforts to maintain independence, Mr. Trump’s attacks have led some to question whether he can effectively lead the Fed amid the ongoing criticism. The chairman is set to speak on a panel at an upcoming conference in Portugal, where other global central bankers will also be present.
Source: https://www.nytimes.com/2025/06/30/business/trump-powell-fed-handwritten-note.html