President Donald Trump strongly criticized Federal Reserve Chair Jerome Powell for not cutting interest rates. In a social media post, Trump said Europe has already made ten rate cuts while the U.S. has done none. He argued that the U.S. economy is doing well, with low inflation, and interest rates should be lowered by at least two to three percentage points.
According to Trump, cutting rates could save the country around $800 billion per year. He urged Congress to hold Powell accountable, calling him “very dumb” and “hardheaded,” and warned that the country will pay for his decisions for years to come.
Meanwhile, Federal Reserve Governor Michelle Bowman signaled she is open to cutting rates as early as the July meeting if inflation stays under control. She said the job market is beginning to show signs of weakness and that trade policies are unlikely to drive inflation much higher. Bowman emphasized the need to shift toward a more balanced rate policy as inflation indicators continue to cool.
