(Morgan Sweeney, The Center Square) President Donald Trump again called for the Federal Reserve to lower interest rates Thursday morning.
In a post on Truth Social, the president chastised Fed Chairman Jerome Powell for not having cut rates in 2025.
“The [European Central Bank] is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump said.
The Fed cut rates three times in 2024, but Trump has called for more rate cuts several times since returning to office, including at the World Economic Forum in January, again on Truth Social in March as a means of boosting the economy throughout the implementation of new tariffs and Thursday. The Fed chose to hold interest rates steady in March at 4.25% to 4.50% range, as they have since December, though the Federal Open Market Committee has projected two cuts later in 2025, according to US Bank.
Trump said Powell should have lowered interest rates already, since prices are down, and that he can’t wait for Powell’s termination.
“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote in his post.
The Federal Reserve is an independent agency and as such, the president has limited power over the members of its board. The president can nominate a new chairman or reappoint the existing chair – either of whom must be confirmed by the Senate – at the end of the current chair’s four-year term, but removing or replacing the chairman is more complex. Powell is set to serve as Fed chair through May 2026 and has said it’s illegal for Trump to fire him.
