Trump-Powell Fued: US President Bats For Rate Cuts, Believes Could Save $1 Trillion Annually

The 47th U.S. President Donald Trump has yet again made his arguement for rate cuts buoyed by his belief that it would result in savings of $1 trillion annually.

In a post on his social media platform Truth Social on Wednesday, Trump said, "Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!"

In a separate post, Trump mentioned “LOW” consumer prices, however, annual inflation in the US was at 2.7 per cent in June, above market expectations.

"Bring down the Fed Rate, NOW!!!" he added.

The U.S. President has repeatedly publicly demanded that the Fed cut interest rates, citing moves by the European Central Bank, which has cut its benchmark rate several times in 2024 and 2025, and warned that delays could stall the US economy.

Also Read: Powell Out? US Kicks Off Formal Process to Replace Fed Chief

The Fed, however, has kept the policy rate constant in previous meetings, in the 4.25 per cent - 4.5 per cent range.

Trump's comments comes at a time when the U.S. Treasury Secretary Scott Bessent has confirmed that the search for replacin Fed Chair Jerome Powell is already in process.

“There are a lot of good candidates inside and outside the Federal Reserve," Bessent said.

As per Bessent, the White House aims to announce a nominee for the next Fed chair as early as October or November.

Last weekend, Trump said that he hopes Powell quits.

"I think if Jerome Powell stepped down, it would be a great thing. I don't know that he's going to, but he should," Trump told reporters at Joint Base Andrews in Maryland.