How many times has Trump shouted for Powell to cut interest rates? Why didn't Powell drop?

How many times has Powell been urged to cut interest rates since Trump took office in January? Why is Trump urging? Why didn't Powell cut interest rates?

Written by: Deng Tong, Golden Finance

On June 24, 2025, Trump posted on his social media platform Real Social that "Mr. Too Late" Federal Reserve Chairman Jerome Powell will explain in Congress today why he refused to lower interest rates. Europe has cut rates 10 times, and we have zero. There is no inflation, the economy is booming - we should reduce it by at least 2 to 3 percentage points. It would save the U.S. $800 billion a year.

Since Trump took office in January, how many times has Powell been urged to cut interest rates? Why is Trump urging? Why didn't Powell cut interest rates?

I. How many times did Trump urge Powell?

On June 24, U.S. President Trump posted on his social media platform "Truth Social" that "Mr. Too Late" Fed Chairman Jerome Powell will explain to Congress today 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 by 2 to 3 percentage points. It 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 the excuse that there may be a risk of inflation in the future – 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 that the U.S. had collected $88 billion from tariffs and that there was "no inflation," again calling for lower interest rates. "If the Fed cuts interest rates, we will 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 moving to a long-term strategy."

On June 13, Trump said he did not intend to fire Fed Chair Jerome Powell, but called him a "fool" because he did not cut rates. In his speech, Trump said that a 200 basis point rate cut could save the United States $600 billion a year. "We're spending $600 billion a year just because a 'fool' sits here and says, 'I don't see enough reason to cut rates right now,'" Trump said. Trump added that if inflation rises, he agrees with the Fed raising interest rates, "but now that inflation is coming down, I may have to do something."

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 to raise rates if inflation occurs within a year.

On June 6, Trump said Fed Chair Jerome Powell should cut interest rates. Interest rates should be cut by a full percentage point, Europe has cut rates ten times in a row, and we have yet to cut any rates, the Fed's "Mr. Too Late" is a disaster.

On June 4, Trump posted on social media that the ADP data was out and that Fed Chairman Jerome Powell must cut interest rates now. He's incredible, Europe has cut interest rates nine times.

On May 14, Trump posted on "Real Social" that there is no inflation, and the prices of gasoline, energy, groceries, and almost every other commodity are falling! The Fed must lower interest rates, as Europe and China have done. "Mr. Too Late" Powell, why are you still hesitating? This is unfair to the United States, which is preparing to prosper. Let everything run its course, it will be a beautiful thing!

On April 23, Trump said at the swearing-in ceremony of SEC Chairman Atkins that he had no intention of firing Fed Chair Jerome Powell, despite his disappointment that the Fed did not cut interest rates faster. "Never," Mr. Trump told reporters, "the media always messes things up." I'm not going to fire him. I'd like to see him be more active in his idea of lowering interest rates." "Grocery prices have come down, everything is going down," Trump said. The only thing that hasn't gone down, but hasn't gone up 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, not late." Trump also said that the stock market was rising well.

On April 22, Trump said that the country's economy could slow if Fed Chair Jerome Powell did not cut interest rates immediately. In a post on his social media platform on Monday, Trump asserted that falling prices for energy and daily necessities determined that "there will be almost no inflation." "But the economy could slow down, unless the big piece of 'Mr. Too Late' cuts interest rates now," Mr. Trump said again by scornful terms to Powell.

On April 18, US President Donald Trump spoke at the White House, reiterating that Fed Chair Jerome Powell should lower interest rates. At the same time, he said that the United States is very likely to reach an agreement with Ukraine. Fed Chairman Jerome Powell made it clear in his speech at the Economic Club of Chicago a few days ago that he would not take emergency rescue measures due to market volatility. Powell's statement immediately drew strong criticism from US President Donald Trump.

On April 17, Trump renewed pressure on Powell, saying that he could let Powell go immediately and demand that the Fed cut interest rates immediately.

April 4, Trump: For Fed Chair Jerome Powell, now is the perfect time to cut interest rates. Fed Chair Jerome Powell always acted too late. (Shout-out to Fed Chairman Jerome Powell) to cut interest rates, stop playing politics.

On March 24, during a cabinet meeting at the White House, Trump again urged the Federal Reserve to ease monetary policy.

On March 19, Trump posted on "Truth Social" saying, "The Federal Reserve better cut interest rates," as the impact of U.S. tariffs begins to gradually seep into the economy.

On 12 February, Trump said he believes interest rates should be lowered and that the cuts will complement the upcoming tariffs.

On January 24, Trump said at the World Economic Forum in Davos, Switzerland, "As oil prices fall, I will demand an immediate rate cut, and likewise, the whole world should cut interest rates."

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

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

Offsetting the impact of tariffs: Trump's tariffs have led to higher costs of imported goods, triggering imported inflation, and the U.S. economy is at risk of increased inflation and slower economic growth. He hopes to "offset" the inflation brought about by the tariff policy by cutting interest rates and easing the pressure on the economy. Fortune has reported that Trump wants to lower interest rates to "offset" the inflation caused by his own tariff policy. The Associated Press believes that Trump's tariff policy has increased the risk of a recession in the United States, and Trump seems to want to put the blame on Powell.

Reducing the cost of government debt: U.S. Treasury Department 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 can typically increase market liquidity, stimulate business investment and household consumption, and promote economic growth. Trump may believe that the current U.S. economic growth is under certain 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 can also help increase his support among voters.

Driving stock market performance: Trump views the performance of the U.S. stock market as an important political achievement. Interest rate cuts can increase liquidity in the market, which in turn will spur credit expansion and higher asset prices, and the stock market will look positive in the short term, which will benefit its constituents.

3. Why didn't Powell cut interest rates?

On 19 June, Fed Chair Jerome Powell said that while the Fed "can see that the labor market may be cooling slowly and persistently," it is not a cause for concern given the current strong labor force participation rate and good wage growth. "While uncertainty about the economic outlook has declined, it remains at a high level," he said. As long as the current state of the labor market, combined with relatively reasonable economic growth and gradually falling inflation, Powell said that he is willing to continue to wait for more information before deciding on the next step.

Data shows that despite a 0.3% quarter-on-quarter contraction in GDP in the first quarter of 2025, the labor market is strong: the unemployment rate has stabilized at a low of 4.5% and hourly earnings growth has remained above 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%, which contrasts with the weakness of "soft indicators" such as the manufacturing PMI. This structural contradiction has led the Fed to believe that the economy is not yet in a recession and there is no need to cut interest rates to stimulate demand.

4. What do others think about the Federal Reserve's interest rate cut issue?

Support for Interest Rate Cuts:

U.S. Vice President Vance: The Federal Reserve's refusal to cut interest rates is a misstep in monetary policy.

Fed's Goolsbee said there has been a lack of significant inflationary pressures since Trump imposed tariffs on April 2, which could allow the Fed to cut rates again.

Fed Governor Bowman said: "If inflationary pressures are under control, I would support lowering the policy rate as soon as possible at the next meeting to bring it closer to the neutral level and maintain a healthy labor market."

U.S. Secretary of Commerce Lutnik said that the United States is the greatest country in the world, but it has to bear the highest interest rates of all the first-class countries. Our Fed chairman is clearly afraid of even his own shadow. What's really sad about Powell's remarks is his claim that the tariffs have led to "higher prices for some related categories of products, such as personal computers." You think Powell should know that there are no tariffs on PCs. Not yet. Tariffs on semiconductors and computers will be announced after the Commerce Department completes its analysis. These high interest rates make no sense.

Director of the Federal Housing Finance Agency Pulte: Federal Reserve Chairman Powell must cut interest rates immediately.

No support for interest rate cuts:

Fed's Barkin said that the current data shows that there is no urgent reason for a rate cut, the job market and consumption remain firm, and the final direction of trade policy is not yet determined, and it is unclear how it will affect prices and employment; Businesses expect to raise prices later this year as more higher-priced imports enter their inventories; Companies that have not been affected by the tariffs see the trade policy chaos as an opportunity to raise prices.

Bridgewater Fund Founder Ray Dalio: The Fed is in a difficult situation and should not cut interest rates.

Fifth, the Fed's interest rate cut timing forecast

Fed's Harker said the deficit must be brought under control at a time when the U.S. financial system is facing growing challenges, and is "very concerned" about the current state of government finances. "We're becoming more and more blind when it comes to critical data. We are concerned that the quality of economic data is declining. Uncertainty makes it very difficult to forecast the outlook for monetary policy. But amid the uncertainty, the Fed is still likely to cut interest rates later this year."

Citi has adjusted its expectation for the Federal Reserve to cut interest rates from July to September.

Jamie Cox, managing partner of Harris Financial Group, said that the U.S. labor market remains strong but is gradually cooling. Given the sharply revised previous value of this NFP, I expect the Fed to return to rate cut mode in July. Salaries are stable at the moment, but they are likely to change in the coming months. The biggest variable in the job market is real estate, which has already shown early risk signs and will be exacerbated by a cooling labor market.

Interest rate futures traders expect the Fed to cut 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", labour 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%.