$TRUMP

Trump Criticizes Fed Chair Powell, Urges 2% Interest Rate Cut

In a sharp rebuke during a White House appearance, former President Donald Trump strongly criticized Federal Reserve Chair Jerome Powell, calling him a “numbskull” for refusing to lower interest rates. Trump is now publicly advocating for an aggressive 2-percentage-point rate cut, arguing it would save the U.S. an estimated $600 billion annually.

“We’re going to spend $600 billion a year because of one numbskull who says, ‘I don’t see enough reason to cut rates now,’” Trump said, expressing frustration with the Fed’s current policy stance.

The remarks follow a softer-than-expected inflation report, with May’s producer price index showing weaker growth than anticipated—strengthening Trump’s claim that elevated rates are no longer justified.

The former president is not alone in his critique. Commerce Secretary Howard Lutnick and Vice President JD Vance echoed similar concerns. Lutnick stated, “Inflation is low. He’s got to do his job soon,” while Vance called the Fed’s inaction “monetary malpractice.”

Markets remained stable in the immediate aftermath, but expectations for a September rate cut rose from 69% to 76%, reflecting increased pressure on the central bank.

Trump also revived his penchant for nicknames, dubbing Powell “Too Late” in reference to his perceived poor timing on monetary decisions. Although Trump confirmed he has no intention of removing Powell before his term ends in 2026, he added, “I don’t know why it would be so bad.”

While Powell remains legally protected—especially in light of a recent Supreme Court ruling—the political scrutiny is intensifying. As Trump ramps up his public campaign for looser monetary policy, Powell faces mounting pressure both inside and outside the Fed.#MarketPullback