President Donald Trump has recently reiterated his calls for significantly lower U.S. interest rates, publicly stating that rates should be at 1% and, in other remarks, suggesting they should be at least two to three percentage points lower than current levels. The Federal Reserve, however, has maintained its benchmark interest rate in the 4.25%–4.5% range for the fourth straight time as of June 2025, resisting Trump’s demands for immediate cuts.
Trump has openly criticized Federal Reserve Chair Jerome Powell, even expressing a desire for Powell to resign and stating he would appoint a successor who would lower rates25. Trump’s push comes despite the Fed’s focus on inflation and economic data, with Powell emphasizing a cautious, wait-and-see approach before any rate adjustments.