President Donald Trump is once again turning up the pressure on the Federal Reserve, demanding an immediate and aggressive interest rate cut to boost the economy and rein in borrowing costs.
In a fiery Truth Social post Tuesday morning, Trump declared: “Consumer Prices LOW. Bring down the Fed Rate, NOW!!!” He followed with a second message urging a massive rate cut: “Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!”
Trump’s remarks came just hours after the Bureau of Labor Statistics released the June Consumer Price Index report. While headline inflation ticked up to 2.7% annually—slightly higher than expected—core inflation, which excludes food and gas, cooled to 2.9%. Despite the mixed data, Trump insists inflation is under control and sees no reason for the Fed to keep rates high.
Federal Reserve Chair Jerome Powell, however, has signaled caution, citing tariff-related inflation risks that are complicating the timing of potential cuts. As of now, the market sees little chance of a rate cut this month, with CME FedWatch placing the odds of rates staying at 4.25%–4.5% at over 97%.
Trump, a long-time critic of Powell, has repeatedly accused the Fed of stifling growth and needlessly burdening Americans with high interest costs. He’s also pointed to the soaring national debt—now over $36 trillion—as a reason to ease monetary policy.
Behind the scenes, Trump allies are eyeing the Fed’s controversial $2.5 billion D.C. renovation project as a potential opening to push for Powell’s removal, citing cost overruns and mismanagement.
Whether or not the Fed listens, Trump has made his position clear: cut rates, spark growth, and stop wasting money.
