US President Donald Trump has been urging the Federal Reserve to cut interest rates, citing falling inflation, declining energy prices, and strong job growth. He believes a rate cut would benefit the American economy and has been vocal about his expectations through social media platform Truth Social.
Key Points:
- Rate Cut Requests: Trump has repeatedly called on Federal Reserve Chairman Jerome Powell to lower interest rates, stating it's the perfect time for a cut.
- Tariffs and Inflation: Despite concerns that his tariff policies could lead to higher inflation, Trump argues that inflation is under control, pointing to falling energy and grocery prices.
- Fed's Response: The Federal Reserve has kept rates steady for now, but some economists expect rate cuts in the future, possibly starting in December.
- Economic Indicators: Trump highlights improved employment figures, reduced inflation, and lower energy prices as reasons for the Fed to reconsider interest rates ¹ ² ³.
Recent Developments:
- April 2025: Trump reiterated his call for a rate cut, criticizing the Fed for being "too late and wrong" in their decisions.
- May 2025: Trump expressed his desire for a rate cut on Wednesday, May's Fed meeting, but it seems the Fed might hold off for longer ³ ¹.
Potential Impact:
- Economic Growth: Lower interest rates could spur economic growth, but experts warn of risks to central bank independence and economic stability if the Fed succumbs to political pressure ⁴.