How many times did Trump urge Powell to cut interest rates? Why won't Powell cut?

Deng Tong, Golden Finance

On June 24, 2025, Trump posted on his social media platform "Truth Social" saying, "Too late, Mr. Chairman Jerome Powell of the Federal Reserve will explain today in Congress why he refuses to lower interest rates. Europe has cut rates 10 times, while we have done so zero times. There is no inflation, the economy is booming – we should at least lower it by 2 to 3 percentage points. It would save America $800 billion a year.

Since Trump took office in January, how many times has he urged Powell to cut interest rates? Why does Trump urge? Why doesn’t Powell cut interest rates?

1. How many times did Trump urge Powell?

• On June 24, U.S. President Trump posted on his social media platform "Truth Social" that "Too late, Mr. Chairman" Jerome Powell of the Federal Reserve will explain in Congress today why he refused to lower interest rates. Europe has cut rates 10 times, while we have done so zero times. There is no inflation, the economy is booming—we should lower by at least 2 to 3 percentage points. This would save the U.S. $800 billion each year.
• On June 21, Trump posted on social media that "Mr. Too Late" Powell is always complaining about costs — most of which are caused by the Biden administration. The way he can do the most for the United States now is by decisively lowering interest rates. If he can cut interest rates by one or two basis points, this "elm head" could save the United States up to $1 trillion a year. While my strong criticism may have made it harder for him to carry out his duties (to cut interest rates), I have tried all the gentle measures: I have been polite, neutral, and tough, but unfortunately all of them have failed! Don't use "there may be inflation risks in the future" as an excuse – because there is no inflation at all! Even if it does appear in the future, it will be too late to raise interest rates at that time. I really don't understand why the Fed Board of Governors didn't remove this complete idiot! Maybe I'll have to change my mind about whether or not to fire Powell. But don't worry, his term is coming to an end anyway!
• On June 18, Trump said the U.S. had collected $88 billion from tariffs and that there was "no inflation," reiterating his call for lower interest rates. "If the Fed cuts interest rates, we'll buy Treasuries at a lower price," he said. Frankly, though, we have a stupid guy at the Fed who probably won't cut rates today. He did a terrible job. We should cut rates by 200 basis points, and it would be better if we could cut rates by 250 basis points. I'm going to take a short-term strategy and lower interest rates dramatically before switching to a long-term strategy. ”
• On June 13, Trump stated that he does not intend to fire Federal Reserve Chairman Powell, but referred to him as a "moron" for not lowering interest rates. During his speech, Trump said that a 200 basis point cut could save the U.S. $600 billion a year. Trump said, "We are spending $600 billion a year just because a 'moron' is sitting here saying 'I don't see enough reason to lower interest rates right now.'" Trump added that if inflation rises, he agrees with the Federal Reserve raising interest rates, "but right now inflation is decreasing, and 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 once told Powell that there was no need to keep interest rates at such a high level, and that if inflation occurred within a year, he should raise rates.
• On June 6, Trump stated that Federal Reserve Chairman Powell should cut interest rates. The rates should be lowered by a full percentage point; Europe has cut rates ten times in a row, while we have not taken any rate cut measures. The Federal Reserve's "Mr. Too Late" is a disaster.
• On June 4th, Trump posted on social media stating that the ADP data has been released, and "Mr. Too Late" Federal Reserve Chairman Powell must now cut interest rates. He is unbelievable; Europe has already cut rates nine times.
• On May 14, Trump posted on "Truth Social" saying that there is no inflation, and the prices of gasoline, energy, groceries, and almost all other goods are falling! The Federal Reserve must lower interest rates like Europe and China. "Mr. Too Late" Powell, why are you still hesitating? This is unfair to America, which is ready to thrive. Let everything take its course, and it will be a wonderful thing!
• On April 23, Trump said at the swearing-in ceremony of SEC President Atkins that he had no intention of firing Fed Chairman Jerome Powell, despite his disappointment that the Fed did not cut interest rates faster. "Never," Mr. Trump told reporters, "the media has always made a mess of things." I'm not going to fire him. I'd like to see him be a little more active in the idea of lowering interest rates. "Grocery prices have come down, everything is going down," Trump said. The only thing that hasn't fallen, but hasn't risen much, is interest rates. "We think the Fed should lower interest rates, and now is the perfect time," Trump said. We want our chair to be early or on time (to cut rates) and not late. Trump also said that the stock market was rising well.
• On April 22, Trump stated that if Federal Reserve Chairman Jerome Powell does not cut interest rates immediately, the country's economy could slow down. Trump asserted on his social media platform on Monday that the decline in energy and everyday goods prices determined that there would be "almost no inflation." "But the economy could slow down unless 'Mr. Too Late,' this big piece of garbage, cuts interest rates right now," Trump again referred to Powell with a derogatory term.
• On April 18, U.S. President Trump delivered a speech at the White House, reiterating that Federal Reserve Chairman Powell should lower interest rates. He also stated that the United States is very likely to reach an agreement with Ukraine. Recently, Chairman Powell made it clear during a speech at the Chicago Economic Club that he would not take emergency measures to rescue the market due to market fluctuations. Powell's statement immediately drew strong criticism from President Trump.
• On April 17, Trump once again pressured Powell, stating that he could have Powell leave immediately and demanding that the Federal Reserve lower interest rates immediately.
• On April 4th, Trump: Now is the best time for Federal Reserve Chairman Powell to cut interest rates. Federal Reserve Chairman Powell always acts too late. (A call to Federal Reserve Chairman Powell) Cut interest rates, stop playing politics.
• On March 24, during a Cabinet meeting at the White House, Trump once again urged the Federal Reserve to ease monetary policy.
• On March 19, Trump posted on "Truth Social" saying, "The Fed better cut rates," as the impact of U.S. tariffs begins to gradually seep into the economy.
• On February 12, Trump stated that he believes interest rates should be lowered, and the rate cut will complement the upcoming tariff policy.
• On January 24, Trump stated at the World Economic Forum in Davos, Switzerland, "As oil prices fall, I will demand an immediate interest rate cut, and similarly, the whole world should cut interest rates."

According to statistics from Jinse Finance, Trump has urged Powell at least 17 times. He has also referred to him multiple times as "Mr. Too Late" and "idiot", expressing his dissatisfaction with Powell.

II. Why is Trump in a hurry to cut interest rates?

• Offsetting the Impact of Tariff Policies: The tariff policies implemented by Trump have led to an increase in the cost of imported goods, triggering input inflation. The U.S. economy faces the risks of escalating inflation and slowing economic growth. He hopes to "offset" the inflation brought about by the tariff policies through interest rate cuts, alleviating economic pressure. Fortune reported that Trump hopes to lower interest rates to "offset" the inflation caused by his own tariff policies. The Associated Press believes that Trump's tariff policies have intensified the risk of recession for the U.S. economy, while Trump seems to want to shift the blame onto Powell. Reducing the cost of government debt: U.S. Treasury data shows that interest payments on federal debt are large and growing. Over the past eight months, interest payments on federal debt have been about $776 billion. This represents an increase of 7% compared to the same period of the previous fiscal year, when the interest burden had climbed to its highest level since the 90s of the 20th century. Trump believes that the Fed's interest rate cut will reduce the cost of financing government debt, as he claims that a 2 percentage point rate cut could save $600 billion a year in interest costs. But economists warn that the move could backfire. If interest rates are lowered when economic fundamentals do not require a rate cut, it could trigger inflation concerns. The reduction in demand for U.S. Treasuries will then push bond yields even higher, increasing the government's interest burden.
• Stimulating Economic Growth: Lowering interest rates usually increases market liquidity, stimulates corporate investment and consumer spending, and drives economic growth. Trump may believe that the current U.S. economic growth is under some pressure and hopes to boost the economy through interest rate cuts to achieve his economic policy goals, such as promoting employment and enhancing corporate competitiveness, which also helps to increase his support among voters.
• Boosting Stock Market Performance: Trump views the performance of the U.S. stock market as an important achievement. Interest rate cuts can increase market liquidity, thereby stimulating credit expansion and rising asset prices, which will likely lead to a favorable outlook for the stock market in the short term, benefiting his voter support.

3. Why is Powell not cutting interest rates?

On June 19, Federal Reserve Chairman Jerome Powell stated that although the Federal Reserve "can see that the labor market may be slowly and steadily cooling," this cooling is not a cause for concern given the current strong labor force participation rate and good wage growth. He remarked, "While the uncertainty about the economic outlook has decreased, it remains at a high level." As long as the current labor market conditions are observed, along with reasonable economic growth and gradually easing inflation, Powell said he is willing to continue waiting for more information before deciding on the next steps.

Data shows that despite a 0.3% quarter-on-quarter contraction in GDP in the first quarter of 2025, the labor market is performing strongly: the unemployment rate remains low at 4.5%, and hourly wage growth is above 4%. Powell pointed out that "hard data" such as consumer spending and business investment still indicate that the economy is expanding at a rate of 1.5%-2%, contrasting with the weakness of "soft indicators" like the manufacturing PMI. This structural contradiction leads the Federal Reserve to believe that the current economy has not fallen into recession and does not need to stimulate demand through interest rate cuts.

4. How do others view the issue of the Federal Reserve's interest rate cuts?

supports interest rate cuts:

• U.S. Vice President Vance: The Federal Reserve's refusal to cut interest rates is a misstep in monetary policy.
• Federal Reserve Goolsbee stated that since the tariffs imposed by Trump on April 2, there has been a lack of significant inflationary pressure, which may allow the Federal Reserve to consider lowering interest rates again.
• Federal Reserve Governor Bowman stated: "If inflationary pressures are controlled, I will support a prompt reduction in the policy interest rate at the next meeting to bring it closer to neutral levels and maintain a healthy labor market."
• U.S. Secretary of Commerce Gina Raimondo stated that the United States is the greatest country in the world, yet it has to bear the highest interest rates among all first-world countries. Our Federal Reserve Chair is clearly afraid of his own shadow. The truly upsetting part of Powell's remarks is that he claimed tariffs led to a "rise in prices for some related category products, such as personal computers." You would think Powell should know that there are no tariffs on personal computers. Not yet. The tariffs on semiconductors and computers will be announced after the analysis is completed by the Department of Commerce. These high interest rates are meaningless.
• Director of the Federal Housing Finance Agency Pulte: Federal Reserve Chairman Powell must cut interest rates immediately.

does not support interest rate cuts:

• Federal Reserve Barkin stated that current data does not show an urgent reason to cut interest rates, as the job market and consumption remain strong. The final direction of trade policy has not yet been determined, and it is unclear how it will affect prices and employment. Businesses expect to raise prices later this year, as more higher-priced imported goods have entered their inventory. Companies not affected by tariffs see the confusion in trade policy as an opportunity to raise prices.
• Bridgewater Associates Founder Ray Dalio: The Federal Reserve is in a difficult position and should not lower interest rates.

5. Prediction of the Federal Reserve's Interest Rate Cut Timing

• Federal Reserve's Harker stated that as the U.S. financial system faces increasing challenges, deficits must be controlled, expressing "serious concerns" about the current government fiscal situation. Harker also said: "In terms of key data, we are becoming increasingly blind. We are worried that the quality of economic data is declining. Uncertainty makes it very difficult to forecast the monetary policy outlook. However, amidst the uncertainty, the Federal Reserve may still cut interest rates later this year.
• Citigroup has adjusted its expectation for the Federal Reserve's interest rate cut from July to September.
• Jamie Cox, managing partner of Harris Financial Group, stated that while the U.S. labor market remains strong, it is gradually cooling. Given the significant revisions to the previous non-farm payroll report, I expect the Federal Reserve to resume its rate-cutting mode in July. Current wage levels are still stable, but changes are likely in the coming months. The biggest variable in the job market is real estate—the housing market has shown early warning signs of risk, and a cooling labor market will exacerbate this trend.
• Interest rate futures traders expect the Federal Reserve to cut interest rates twice this year in September and December.
• Franklin Templeton CEO: Expects the Federal Reserve will only cut interest rates once in 2025.
• Ernst & Young economist Gregory Daco said the Fed is expected to keep its benchmark interest rate unchanged at 4.25%-4.50%. The Fed's recent comments have reinforced a wait-and-see approach, with officials not showing urgency to adjust policy amid increased uncertainty about the economic outlook. The policy statement probably won't change much. The FOMC is likely to reiterate that inflation remains "a bit high", labor market conditions are "solid" and the unemployment rate is "stable at a low level". It is likely to reiterate that "the risk of higher unemployment and rising inflation has increased", especially given the uncertainty of the economic outlook. The dot plot for median interest rate expectations is expected to remain unchanged, with two 25bp rate cuts by the end of the year. **The dot plot is still expected to show a further 50bp cut to 3.4% in 2026 and another cut to 3.1% in 2027. Policymakers' median estimate of the long-term neutral rate is likely to remain unchanged at 3%.