Trump Urges Fed to Deliver Rate Cuts Equivalent to 10 Reductions

By Faith Barbara N Ruhinda Updated at 1930 EAT on Thursday 19 June 2025

On Thursday, President Donald Trump escalated his sharp and targeted criticism of Federal Reserve Chair Jerome Powell, calling for a substantial 2.5-percentage-point cut in interest rates.

Despite appointing Jerome Powell as Federal Reserve Chair in 2017, President Donald Trump has repeatedly criticized him for maintaining interest rates at levels higher than Trump prefers.

Following a monetary policy meeting on Wednesday, the Fed announced it would hold rates steady between 4.25% and 4.5%, citing a resilient economy but acknowledging uncertainty around the inflation outlook—due in part to the sweeping tariffs imposed by Trump on foreign goods.

Too Late’ Jerome Powell is costing our Country Hundreds of Billions of Dollars,” Trump posted on Truth Social Thursday. “He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit.

An immediate 2.5-percentage-point rate cut would be unprecedented.

The Federal Reserve typically adjusts its benchmark lending rate in increments of a quarter point, tailoring each change to current economic conditions.

For instance, when inflation soared to 40-year highs in 2022, the Fed raised rates by as much as three-quarters of a point at a time. Conversely, during the early stages of the pandemic, when the economy was struggling, the Fed responded with aggressive rate cuts.

Powell has declined to respond to Trump’s repeated attacks, maintaining that his focus remains on the Federal Reserve’s dual mandate: keeping inflation in check and supporting strong job growth. When asked about Trump’s intention to nominate a new Fed chair when Powell’s term ends next year, he responded that he is concentrating solely on the responsibilities at hand.

“For me, it’s not complicated,” Powell said. “What everyone on the [Federal Open Market Committee] wants is a strong American economy with a healthy labor market and stable prices. That’s our goal. And we believe our current policy is well positioned to help achieve it.”

In their latest economic projections, Federal Reserve officials indicated they expect two quarter-point rate cuts before the end of the year, which would lower the benchmark rate to a range of approximately 3.75% to 4%. However, Trump has expressed frustration with the Fed’s pace.

“Europe has had 10 cuts, we have had none. We should be 2.5 points lower and save $BILLIONS on all of Biden’s short-term debt,” Trump wrote. “We have LOW inflation!”

In reality, the European Central Bank has lowered interest rates eight times over the past year—not ten, as Trump claimed.

Although U.S. inflation has remained relatively low, Powell cautioned that prices could rise in the coming months as the effects of tariffs begin to filter through the economy. He explained that many retailers are still selling goods imported before the tariffs took effect, but as that inventory runs out, consumers may start to see price increases.

“We’ve had goods inflation just moving up a bit,” Powell said on Wednesday. “We do expect to see more of that over the course of the summer.

It takes some time for tariffs to work their way through the chain of distribution. A good example is that goods on store shelves today may have been imported several months ago, before the tariffs were imposed.”

Invest or Donate towards HICGI New Agency Global Media Establishment – Watch video here