Trump pressures Fed for immediate rate cuts
Former President Trump renewed his attacks on the Federal Reserve, calling on the central bank to cut interest rates “sooner, rather than later.” The comments, made in a social media post Saturday, reignited debate over political pressure on monetary policy.
Trump’s critique targeted Fed Chair Jerome Powell directly, reigniting tensions between the former president and the central bank.
Trump calls Powell “Too Late” in scathing post
In a blunt message, Trump wrote: “Too Late Powell, a man legendary for being Too Late, will probably blow it again – But who knows???”
The post suggests Trump believes Powell has consistently failed to act swiftly enough, particularly during periods of economic stress or uncertainty.
Trump demands action as market uncertainty grows
Trump’s call for faster rate cuts comes as inflation lingers above target and economic momentum shows signs of slowing. With markets on edge, Trump‘s message taps into a growing sentiment among investors that monetary easing is overdue.
He emphasized that “the consensus of almost everybody” is for the Fed to act quickly, despite the absence of formal data to support a unanimous view.
Trump’s history of clashing with the Fed
This isn’t the first time Trump has clashed with Powell. During his presidency, he repeatedly pressured the Fed to lower rates, particularly when markets stumbled or trade tensions escalated.
Although central banks are meant to operate independently, Trump‘s repeated interventions raised concerns over political influence on monetary policy.
Fed maintains cautious approach despite Trump pressure
Despite Trump‘s calls, the Fed has held its benchmark rate steady, citing persistent inflation and economic resilience. Fed Chair Powell has signaled the need for clear disinflation before considering cuts.
Many Fed officials remain hesitant to shift policy until more consistent progress is seen across inflation, employment, and consumer spending data.
Trump’s rhetoric fuels speculation and volatility
Trump‘s statement may fuel additional market speculation about the Fed’s next move. While traders have priced in rate cuts for late 2025, some now believe political pressure could accelerate that timeline.
However, central bank officials maintain that their decisions are driven by data — not presidential tweets or social media posts.
Trump sets tone ahead of key economic decisions
As the economy evolves, Trump’s criticism may shape public discourse around the Fed’s role. Whether it moves policy or not, his influence remains potent in the political and financial narrative.
With Jerome Powell under renewed scrutiny, the coming months could test the Fed’s independence — and its ability to navigate politics while managing inflation.