Donald Trump has once again stirred the economic waters—just ahead of the Federal Reserve’s July FOMC meeting, he fiercely criticized Chairman Jerome Powell and is now calling for a 300 basis point rate cut. According to Trump, interest rates are "at least 3 percentage points too high," which he claims is dragging down the U.S. economy.


🔹 Trump: Powell Is Costing Us Billions

In a Truth Social post, Trump accused the Fed chair of costing the country $360 billion a year in refinancing costs due to high interest rates. He argued that Powell’s reluctance to lower rates has already inflicted nearly $1 trillion in economic losses on the United States.

“The ‘Too Late’ contract costs the U.S. $360 billion a year,” Trump wrote, referencing Powell's alleged inaction.

He also cited research from the White House Council of Economic Advisers (CEA), claiming it proves his tariffs have no impact on inflation—countering Powell’s argument that Trump’s trade barriers are fueling price pressures.


🔹 Fed Remains Cautious Despite Easing Inflation

Even as U.S. inflation shows signs of cooling and capital continues to flow into the economy, the Federal Reserve remains cautious. Powell maintains that stable interest rates are necessary due to ongoing inflation risks—especially in light of Trump’s new tariffs on Japan and South Korea.

Recent strong job data has further dampened enthusiasm for a rate cut. While the probability of a July rate cut once stood at 23%, it has now dropped to just 8%. Meanwhile, markets give a 91% probability that the Fed will keep rates steady in the 4.25–4.5% range.


🔹 Political Pressure Mounts

Trump isn’t letting up. In addition to public criticism, he has called for a congressional investigation into Powell over alleged misleading statements made during recent Senate hearings. His push aims to accelerate monetary easing ahead of the upcoming presidential election.


#TRUMP , #FederalReserve , #JeromePowell , #Fed , #TruthSocial

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