Trump Urges Fed to Cut Interest Rates Amid Market Turmoil

United States President Donald Trump has urged Federal Reserve Chair Jerome Powell to lower interest rates, arguing it would boost the economy.

In a post on Truth Social, Trump claimed that inflation and energy prices were down while job growth was up. “This would be a PERFECT time for Fed Chairman Jerome Powell to cut interest rates. He is always ‘late,’ but he could now change his image, and quickly,” he wrote.

His demand comes as global markets react negatively to his newly announced tariffs, raising concerns about economic slowdown and inflation. The Federal Reserve has paused rate cuts due to inflation worries, and the new tariffs could further complicate the situation.

Also Read: Fed Chair Says That Bigger-Than-Expected Tariffs Will Translate Into Higher Inflation

“Energy prices are down, interest rates are down, inflation is down, even eggs are down 69%, and jobs are UP—all within two months. A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” Trump added.

Meanwhile, Powell stated that the Fed is waiting for “greater clarity” before making any policy changes, adding that the announced tariffs were “larger than expected.”

“We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation,” undermining both of the Fed’s mandates of 2 per cent inflation and maximum employment, Powell was quoted as saying at a media conference. 

Speculation is growing that the Fed may implement up to four rate cuts this year, though officials previously projected only two. Powell declined to respond directly to Trump’s remarks.

"While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," Powell said.

Trump has frequently criticized Powell’s policies in the past, fueling speculation about the Fed chair’s future. However, Trump has previously stated he does not intend to remove him.