Donald Trump continues to pressure the US Federal Reserve to cut interest rates despite Jerome Powell and the committee’s hesitance. This time, the president has called for a “rocket fuel” 100 basis points (Bps) Fed rate cut ahead of the FOMC meeting later this month.
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President Trump Pushes For A 100 Bps Fed Rate Cut
In a Truth Social post, the US president urged the Federal Reserve to go for a full point cut, which he described as what would be a “rocket fuel” for the economy. He made this statement while also criticizing Fed Chair Jerome Powell as being too late and a “disaster.”
Trump noted that the European Central Bank (ECB) has made 10 rate cuts this year while the FOMC has yet to make any. As CoinGape reported, the latest ECB rate cut came on June 5, with Europe cutting interest rates by 25 bps to 2%.
In another Truth Social post, Trump again pushed for a Fed rate cut. He stated that if Powell cut, the US would greatly reduce interest rates, long and short, on debt that is coming due.
He noted that Joe Biden went mostly short-term. However, the president believes that there is “virtually no inflation” anymore. Trump even went as far as calling for a deal with the Fed, asking them to raise the rate to counter if inflation should come back.
In the meantime, he believes the logical thing to do is to cut rates, stating that it is “very simple.” Trump also declared that Powell and the FOMC’s reluctance is costing the country a fortune, as borrowing costs should be much lower.
The president’s latest call for a Fed rate cut comes just less than two weeks before the FOMC meeting, scheduled for 17 and 18. CME FedWatch data shows that there is a 99.9% chance that the Fed will keep interest rates steady between the current range of 425 and 450 Bps.
The May FOMC meeting minutes showed that the FOMC is in no hurry to cut interest rates. Instead, they are choosing to wait and see how the Trump tariffs impact the economy.
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Donald Trump Calls For A 100 Bps Fed Rate Cut Ahead June FOMC Meeting
Donald Trump continues to pressure the US Federal Reserve to cut interest rates despite Jerome Powell and the committee’s hesitance. This time, the president has called for a “rocket fuel” 100 basis points (Bps) Fed rate cut ahead of the FOMC meeting later this month.
Advertisement
Advertisement
President Trump Pushes For A 100 Bps Fed Rate Cut
In a Truth Social post, the US president urged the Federal Reserve to go for a full point cut, which he described as what would be a “rocket fuel” for the economy. He made this statement while also criticizing Fed Chair Jerome Powell as being too late and a “disaster.”
Trump noted that the European Central Bank (ECB) has made 10 rate cuts this year while the FOMC has yet to make any. As CoinGape reported, the latest ECB rate cut came on June 5, with Europe cutting interest rates by 25 bps to 2%.
In another Truth Social post, Trump again pushed for a Fed rate cut. He stated that if Powell cut, the US would greatly reduce interest rates, long and short, on debt that is coming due.
He noted that Joe Biden went mostly short-term. However, the president believes that there is “virtually no inflation” anymore. Trump even went as far as calling for a deal with the Fed, asking them to raise the rate to counter if inflation should come back.
In the meantime, he believes the logical thing to do is to cut rates, stating that it is “very simple.” Trump also declared that Powell and the FOMC’s reluctance is costing the country a fortune, as borrowing costs should be much lower.
The president’s latest call for a Fed rate cut comes just less than two weeks before the FOMC meeting, scheduled for 17 and 18. CME FedWatch data shows that there is a 99.9% chance that the Fed will keep interest rates steady between the current range of 425 and 450 Bps.
The May FOMC meeting minutes showed that the FOMC is in no hurry to cut interest rates. Instead, they are choosing to wait and see how the Trump tariffs impact the economy.
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