How many times did Trump call for Powell to cut interest rates? Why didn't Powell cut?

Authored by Deng Tong, Golden Finance

On June 24, 2025, Mr. Trump posted on his social media platform 'True Social' that 'Mr. Too Late' Jerome Powell, the chairman of the Federal Reserve, will explain to Congress today why he refuses to lower interest rates. Europe has cut interest rates 10 times, and we have zero. There is no inflation, the economy is booming - we should at least lower by 2 to 3 percentage points. This would save the United States $800 billion annually.

How many times has Trump urged Powell to cut interest rates since he took office in January? Why does Trump urge? Why doesn't Powell cut interest rates?

How many times has Trump urged Powell?

On June 24, President Trump posted on his social media platform 'Real Social' stating, 'Mr. Too Late' Jerome Powell, Chairman of the Federal Reserve, will explain to Congress today why he refuses to lower interest rates. Europe has cut rates 10 times, and we have cut zero times. With no inflation, a booming economy - we should lower by at least 2 to 3 percentage points. It would save the United States 800 billion dollars a year.

On June 21, Trump posted on social media saying, 'Mr. Too Late' Powell is constantly complaining about cost issues - most of which are caused by the Biden administration. The best way he can contribute to the United States now is to decisively lower interest rates. If he could cut interest rates by one to two basis points, this 'wooden head' could save up to $1 trillion in annual US spending. Although my strong criticism may make it harder for him to fulfill his duties (lower interest rates), I have tried all gentle means: I have been polite, neutral, and tough, but unfortunately all have failed! Don't use 'potential inflation risks in the future' as an excuse - because there is no inflation now! Even if it does happen in the future, there will be time to raise interest rates then. I really don't understand why the Federal Reserve Board doesn't replace this complete idiot! Maybe I need to change my mind on whether to fire Powell. But there's no rush, as his term is almost up!

On June 18, Trump stated that the U.S. has collected $880 billion from tariffs and 'there is no inflation,' once again calling for a rate cut. He said: 'If the Fed cuts interest rates, we will buy U.S. bonds at a lower price. However, to be frank, we have a stupid person at the Fed who may not cut rates today. He is doing a terrible job. We should cut rates by 200 basis points, and it would be even better if we could cut by 250 basis points. I plan to take a short-term strategy first, significantly reducing interest rates, and then switch to a long-term strategy.'

On June 13, Trump said he did not intend to dismiss Federal Reserve Chairman Powell, but called him a 'fool' for not lowering interest rates. Trump said in his speech that cutting rates by 200 basis points per year could save the United States $600 billion. Trump said: 'We spend $600 billion a year just because a 'fool' is sitting here saying 'I don't see enough reasons to lower rates now.' ' Trump added that if inflation rises, he agrees to raise rates with the Fed, 'but now that inflation is falling, I may have to take some measures.'

On June 12, Trump pointed out: I will not fire Federal Reserve Chairman Powell, he just needs to lower interest rates, our inflation data is performing well. I have told Powell that there is no need to keep interest rates at such a high level, and if inflation occurs within a year, raise rates.

On June 6, Trump said that Fed Chairman Powell should cut interest rates. The rate should be cut by a full percentage point. Europe has cut interest rates ten times in a row, while we have not taken any interest rate cuts. The 'Too Late Mr.' of the Fed is a disaster.

On June 4th, Trump posted on social media that the ADP data was released, and 'Mr. Too Late' Fed Chairman Powell must now cut interest rates. He is so incredible, Europe has already cut interest rates nine times.

On May 14th, Trump posted on 'Real Social' saying, there is no inflation, the prices of gasoline, energy, groceries, and almost all other goods are falling! The Fed must lower interest rates like Europe and China. 'Too late' Mr. Powell, why hesitate? This is unfair to the United States, which is ready to prosper. Let everything take its course, this will be a good thing!

On April 23, Trump stated at the swearing-in ceremony of the Chairman of the US Securities and Exchange Commission, Atkins, that he had no intention of firing Fed Chairman Powell, despite his disappointment with the Fed's failure to cut interest rates faster. 'Never,' Trump told reporters, 'the media always makes a mess of things. I don't intend to fire him. I hope to see him more proactive in the idea of lowering interest rates.' Trump said, 'Grocery prices have fallen, everything is falling. The only thing that hasn't fallen but hasn't risen much is interest rates.' Trump said, 'We believe the Fed should cut interest rates, now is a perfect time. We hope our chairman can cut rates early or on time, rather than being late.' Trump also said that the stock market is doing well.

On April 22, Trump said that if Federal Reserve Chairman Jerome Powell does not cut interest rates immediately, the country's economy may slow down. Trump asserted in a post on his social media platform on Monday that the decline in energy and daily prices determined that there would be 'almost no inflation.' 'But the economy may slow down unless 'Mr. Too Late' this big waste cuts interest rates now,' Trump once again used a derogatory term to refer to Powell.

On April 18, President Trump delivered a speech at the White House, reiterating that the Fed Chairman Powell should lower interest rates. He also said that it is very likely that the United States will reach an agreement with Ukraine. Fed Chairman Powell recently stated at the Chicago Economic Club that he will not take emergency market support measures due to market volatility. Powell's statement immediately drew strong criticism from President Trump.

On April 17, Trump once again pressured Powell, saying he could immediately dismiss Powell and demanded the Fed to cut interest rates immediately.

On April 4th, Trump: Now is the best time for Fed Chairman Powell to cut interest rates. Fed Chairman Powell always acts too late. (Calling out to Fed Chairman Powell) Cut rates, stop playing politics.

On March 24, at the White House Cabinet meeting, Trump once again urged the Fed to loosen monetary policy.

On March 19, Trump posted on 'Real Social' saying, 'The Fed had better cut interest rates' because the impact of U.S. tariffs is beginning to seep into the economy.

On February 12th, Trump said he believed that interest rates should be lowered, and that rate cuts would complement the upcoming tariff policies.

On January 24, Trump said at the World Economic Forum in Davos, Switzerland, 'With the fall in oil prices, I will demand an immediate reduction in interest rates, and likewise, the whole world should reduce interest rates.'

According to Jinse Caijing statistics, Trump has urged Powell at least 17 times. And he has repeatedly referred to him as 'Mr. Too Late' and 'fool,' expressing his dissatisfaction with Powell.

Why is Trump in a hurry to cut interest rates?

Offsetting Tariff Policy Impact: Trump's tariff policy has led to an increase in the cost of imported goods, triggering cost-push inflation, and the US economy faces the risks of exacerbating inflation and slowing economic growth. He hopes to offset the inflation caused by the tariff policy by lowering interest rates, easing economic pressure. Fortune reported: Trump hopes to lower interest rates to offset the inflation caused by his own tariff policy. The Associated Press believes that Trump's tariff policy exacerbates the risk of the US economic recession, and Trump seems to want to shift the blame to Powell.

Reducing the cost of government debt: According to data from the US Treasury Department, federal debt interest payments are huge and continue to grow. In the past eight months, federal debt interest payments were about $776 billion. Compared with the same period of the previous fiscal year, this represents a 7% increase, and the interest burden of the previous fiscal year has already reached the highest level since the 1990s. Trump believes that cutting interest rates by 2 percentage points per year can save $600 billion in interest costs. However, economists warn that this move is likely to backfire. Lowering interest rates when there is no need in the underlying economy may trigger inflation concerns. The resulting reduction in demand for US Treasury bonds will further push up bond yields, thereby increasing the government's interest burden.

Stimulate economic growth: Lowering interest rates can usually increase market liquidity, stimulate corporate investment and household consumption, and drive economic growth. Trump may believe that the current US economic growth is under certain pressure and hopes to boost the economy by lowering interest rates to achieve his economic policy goals, such as promoting employment, enhancing corporate competitiveness, etc., which also helps to increase his support among voters.

Driving stock market performance: Trump views the performance of the U.S. stock market as an important political achievement. Rate cuts can increase market liquidity, stimulate credit expansion and asset price appreciation, and the stock market will show a positive trend in the short term, benefiting his voter support.

Why doesn't Powell cut interest rates?

On June 19, Federal Reserve Chairman Powell said that although the Fed 'can see that the labor market may be slowing down slowly and continuously,' considering the strong labor force participation rate and good wage growth, this cooling is not worrisome. He said: 'Although the uncertainty about the economic outlook has decreased, it is still at a relatively high level.' As long as he sees the current labor market conditions like this, and with relatively reasonable economic growth and gradually declining inflation, Powell said he is willing to wait for more information before deciding on the next steps.

According to data, although the GDP shrank by 0.3% quarter-on-quarter in the first quarter of 2025, the labor market performed strongly: the unemployment rate remained stable at a low level of 4.5%, and wage growth maintained at over 4%. Powell pointed out that "hard data" such as consumer spending and business investment still show that the economy is expanding at a rate of 1.5%-2%, contrasting with the weakness of "soft indicators" such as manufacturing PMI. This structural contradiction leads the Fed to believe that the current economy has not fallen into recession and does not need to stimulate demand by cutting interest rates.

How do others view the issue of the Fed rate cut?

Interest rate cut support:

US Vice President Pence: The Federal Reserve's refusal to cut interest rates is a misguided monetary policy.

Federal Reserve's Goolsbee said that there has been a lack of significant inflation pressure since Trump imposed tariffs on April 2, which may allow the Fed to cut interest rates again.

Federal Reserve Board Governor Bowman said, 'If inflation pressures are contained, I will support a prompt reduction in the policy rate at the next meeting to bring it closer to a neutral level and maintain a healthy labor market.'

US Commerce Secretary Ross said the US is the greatest country in the world, yet it has to endure the highest rates among all first-class countries. Our Fed Chair seems to be afraid of his own shadow. What's truly sad about Powell's remarks is that he claims tariffs have led to 'price increases in some related product categories, such as personal computers'. You'd think Powell should know that personal computers are not subject to tariffs. Not yet. Tariffs on semiconductors and computers will be announced after the completion of the analysis by the Commerce Department. These high rates are meaningless.

Federal Housing Finance Agency Director Pulte: Fed Chairman Powell must cut interest rates immediately.

No rate cut support:

Federal Reserve Chairman Powell said that there is currently no compelling reason to cut interest rates based on current data, as the labor market and consumption remain strong. The final direction of trade policy has not yet been determined, and its impact on prices and employment is unclear. Companies expect to raise prices later this year as more expensive imported goods have entered their inventories. Businesses unaffected by tariffs see trade policy chaos as an opportunity to raise prices.

Bridgewater Associates founder Ray Dalio: The Fed is in a difficult position and should not cut interest rates.

5. Prediction of the timing of the Fed rate cut

Federal Reserve's Harker said that, as the US financial system faces increasingly growing challenges, the deficit must be controlled, and he is "very concerned" about the current government's fiscal situation. Harker also said: "In key data, we are becoming more and more blind. We are concerned that the quality of economic data is declining. Uncertainty makes it very difficult to predict the monetary policy outlook. But in the uncertainty, the Fed may still cut interest rates later this year."

Citigroup has adjusted its Fed rate cut expectations from July to September.

Harris Financial Group's managing partner Jamie Cox said that the US labor market remains strong but is gradually cooling. Given the significant revision of the previous value in this non-farm report, I expect the Fed to restart the rate-cutting cycle in July. The current wage level is still stable, but it is likely to change in the coming months. The biggest variable in the job market is real estate—early risk signals have emerged in the property market, and a cooling labor market will exacerbate this trend.

Interest rate futures traders expect the Fed to cut rates twice in September and December this year.

Franklin Templeton CEO: The Fed is expected to cut interest rates only once in 2025.

EY economist Gregory Daco said that the Fed is expected to keep the benchmark interest rate at 4.25%-4.50%. The recent comments from the Fed have reinforced a wait-and-see attitude. In the face of increased uncertainty in the economic outlook, officials have not shown a sense of urgency to adjust policy. There may not be significant changes in the policy statement. The FOMC may reiterate that inflation is still "a bit high", the labor market conditions are "stable", and the unemployment rate is "staying at a low level". It may reiterate that "the risks of higher unemployment and rising inflation have increased", especially considering the uncertainty in the economic outlook. It is expected that the median dot plot for interest rate expectations will remain unchanged, with two 25 basis point rate cuts by the end of the year. The dot plot is expected to still show a further 50 basis point rate cut to 3.4% in 2026, and another cut to 3.1% in 2027. The policymakers' median estimate of the long-term neutral interest rate may remain unchanged at 3%.