**Trump Demands Drastic Fed Rate Cuts, Calls Powell "Stupid" and "Incompetent"**

**🗣️ Key Quotes:**

- **"We should be at 1% or 2%—now!"** Trump insists rates are "artificially high" and blames Fed Chair Jerome Powell for costing the U.S. "hundreds of billions" in debt payments .

- **"I’d love him to resign... He’s done a lousy job."** Trump escalates attacks, accusing Powell of suffering from "Trump Derangement Syndrome" .

**🔍 Context:**

1. **Unprecedented Pressure**: Trump demands **2.5–3% rate cuts** (equivalent to 10 Fed cuts), far beyond the Fed’s projected two 0.25% cuts in 2025 .

2. **Debt Refinancing Motive**: With **$9T in U.S. debt coming due**, Trump wants lower rates to reduce borrowing costs, calling Powell "stupid" for resisting .

3. **Tariff Inflation Clash**: The Fed cites uncertainty from Trump’s tariffs as a reason to hold rates (currently **4.25–4.5%**), warning of potential consumer price spikes .

**⚡ Political Fallout:**

- Trump vows to replace Powell by **October 2025** (ahead of his May 2026 term end), seeking a chair who will "cut rates immediately" .

- Potential successors include Treasury Secretary **Scott Bessent** and ex-Fed official **Kevin Warsh** .

**💼 Market Impact:**

- Analysts warn that politicizing rate decisions could **destabilize inflation expectations** and spike long-term yields .

- The Fed maintains independence, with Powell stating: **"We’re well positioned to wait"** amid tariff uncertainties .

**📌 Bottom Line:** Trump’s crusade for ultra-low rates is intensifying, but the Fed remains cautious—setting up a high-stakes showdown for 2025.