Trump Asks Fed Chair to Cut Interest Rates and 'Stop Playing Politics'

US President Donald Trump has called on Federal Reserve Chair Jerome Powell to lower interest rates, arguing that economic conditions justify a cut. In a fiery post on Truth Social, Trump insisted that Powell should act quickly to support the economy.

"This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates," Trump wrote. "He is always 'late,' but he could now change his image, and quickly."

Trump claimed that declining energy prices, falling inflation, and a strong job market as reasons for the Fed to take action. "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," he claimed. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

Powell Warns of Inflation Risks

Trump’s demand comes just as Powell warned that escalating tariffs could push inflation higher and slow economic growth. Speaking at a business journalism conference on Friday, Powell said that the economic impact of the tariffs could be more severe than previously anticipated.

"While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected," Powell stated. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth."

Fed Holding Steady on Rates

Powell’s comments suggest that the Federal Reserve is not planning to lower rates anytime soon, despite market turbulence and growing economic concerns.

"We are well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell said. "It is too soon to say what will be the appropriate path for monetary policy."

The Political Backdrop

Trump’s pressure on Powell reflects his long-standing frustration with the Fed, which he has repeatedly accused of acting too cautiously. The Federal Reserve has kept interest rates steady in recent months, balancing concerns over inflation with fears of an economic slowdown.

With financial markets reeling from the latest U.S.-China trade war escalation, Trump appears eager for a rate cut that could boost economic confidence. However, Powell’s remarks indicate that the Fed is more focused on controlling inflation than responding to political pressure.

As the debate over monetary policy continues, the question remains: Will Powell stick to his cautious approach, or will Trump’s demands push the Fed toward action?