Trump Pressures Fed as Powell Resists Calls for Immediate Rate Cut

Donald TRUMP is intensifying his demands for Federal Reserve Chair Jerome Powell to cut interest rates immediately, citing robust U.S. economic growth of 3% in Q2. Trump argues that a rate reduction would invigorate the housing market, facilitate refinancing for families, and sustain economic momentum. On Truth Social, he criticized Powell as "Too Late," urging swift action ahead of the July FOMC meeting. Despite the pressure, the Fed maintained rates for the fifth consecutive time, leaving the benchmark rate between 4.25% and 4.5%.

Jerome Powell remains cautious, emphasizing the need for further analysis of tariff impacts and inflation trends before any policy shift. While some Fed governors, including Trump appointees Christopher Waller and Michelle Bowman, advocated for an immediate cut, the majority opted for restraint. Powell warned that premature action could reignite inflation, while delayed moves might harm employment. The Fed's stance reflects a balancing act between economic stimulation and inflationary control.