Trump Calls for Lower Interest Rates
President Donald Trump has declared that the US is “back” and urged the Federal Reserve to lower interest rates.
He has focused on creating transparency to highlight the impressive highs in both the stock market and the cryptocurrency sector.
“Tech stocks, industrial shares, and the Nasdaq have reached unprecedented levels—record highs! Cryptocurrency is soaring,” Trump stated, noting that Nvidia has jumped 47% as the US contends with substantial tariffs. He emphasized this before pushing for lower interest rates.
“The Fed should quickly bring down rates to match this strength. There’s absolutely no inflation!!!” he added.
Trump has consistently criticized Federal Reserve Chair Jerome Powell, blaming him for maintaining elevated interest rates. Despite Trump’s mounting pressure, the Fed has resisted making this change.
Powell has previously expressed concerns about the potential inflation risks stemming from Trump’s tariffs, which have not come to fruition.
In a follow-up post on Thursday, Trump labeled Powell as “Too late Powell,” reiterating his frustrations.
The phrase “Too late” diminishes America’s credibility, according to Trump, who claimed, “We currently have the best credit in the world! It’s a massive comeback.” He insisted that the Fed’s rates should align accordingly. “Lower the rate!!!” he exclaimed.
Back in June, the Federal Reserve had set benchmark interest rates between 4.25% and 4.5%. As noted by an economics editor, this was followed by a 50 basis point cut in September and an additional 25 basis points in both November and December.
While inflation has recently dipped below the Fed’s 2% target, officials remain cautious. In their last meeting, they raised the inflation forecast and still anticipate two interest rate cuts in 2025, consistent with earlier predictions from March. Chair Powell acknowledged that recent data reflected “cautious progress,” but emphasized that the Fed needs more assurance that inflation is sustainably moving toward the 2% target before considering further policy adjustments.
Subsequent data released in late June indicated that inflation had eased in May, as highlighted earlier.
