Trump Slams Fed After Rate Hold, Demands Immediate Cuts and Says Rates Should Be 2.5 Points Lower

Key Points

• Research suggests Trump is calling for a 2.5 percentage point interest rate cut, equivalent to 10 quarter-point Fed rate cuts.

• The evidence leans toward this demand being part of his economic strategy, amid criticism of Fed Chair Jerome Powell.

• There is controversy, as the Fed has kept rates steady at 4.25%-4.5%, signaling caution despite Trump's calls.

Background

Donald Trump has been vocal about his desire for the Federal Reserve to lower interest rates, citing economic benefits and comparing the U.S. to Europe, which has seen multiple rate cuts.

Trump's Demand

Trump has stated that interest rates should be 2.5 points lower, which translates to 10 quarter-point cuts, given the Fed's typical adjustment increments. He has criticized Powell, calling him names and linking rate cuts to his broader economic policies, including tariffsFed's Stance

As of June 19, 2025, the Fed has held rates steady, with Powell emphasizing a "wait-and-see" approach, focusing on inflation and economic uncertainties.

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Survy Note

The statement "Trump calls for the equivalent of 10 Fed rate cuts" highlights a significant point of contention between President Donald Trump and the Federal Reserve, particularly its Chair Jerome Powell, as of June 19, 2025. This section provides a detailed analysis of Trump's demands, the Fed's response, and the broader implications, drawing from recent news reports and public statements.

Context of Trump's Demand

Donald Trump, known for his outspoken views on economic policy, has repeatedly called for the Federal Reserve to cut interest rates. Recent reports indicate that he specifically stated interest rates "should be 2.5 points lower" .

Trump's calls for rate cuts have been consistent, with X posts from June 2025 showing him reiterating the need for rates to be "2.5 points lower" and criticizing Powell for not acting.

Date	Statement	Context
June 18, 2025	Rates should be 2.5 points lower	Criticism of Powell, pre-Fed meeting
June 6, 2025	Called for a full 100 basis point cut	X post by @HSajwanization, broader demand
April 4, 2025	Called for immediate cuts due to market reaction	Linked to tariffs, X post by @JDunlap1974

This table summarizes key instances, showing Trump's persistent push for significant rate reductions.

Criticism of Fed Chair Jerome Powell

Trump's frustration with the Fed is evident in his harsh rhetoric. He has labeled Powell as "one of the dumbest, and most destructive," accusing him of costing the country "hundreds of billions of dollars" .

Federal Reserve's Response

Despite Trump's demands, the Federal Reserve has maintained a cautious stance. As of June 18, 2025, the Fed held its benchmark overnight interest rate steady at 4.25%-4.5%, marking the fourth consecutive meeting without a rate cut.

Fed Action	Date	Rate Range	Context
Held rates steady	June 18, 2025	4.25%-4.5%	Fourth consecutive meeting, cautious approach
Previous steady decision	December 2024	4.25%-4.5%	Baseline for current stance

This table highlights the Fed's consistent position, underscoring the tension with Trump's demands.

Implications and Broader Context

Trump's call for a 2.5 percentage point cut, or 10 quarter-point reductions, reflects his belief that lower borrowing costs would stimulate economic growth, particularly in light of his tariff policies, which have caused market volatility

. The controversy is heightened by Trump's potential influence over future Fed leadership, given his planned announcement of a successor, which could shift monetary policy dynamics post-May 2026.

This situation reflects broader tensions in U.S. economic policy, where presidential influence over independent institutions like the Fed is debated. Trump's comparison to Europe, where rate cuts have been more frequent, adds an international dimension, highlighting differing monetary strategies

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Current Status and Reactions

As of June 19, 2025, negotiations and public discourse continue, with X posts showing mixed reactions. Some support Trump's call for cuts, citing potential benefits for debt financing . The Fed remains focused on data-driven decisions, with Powell's statements emphasizing patience, creating a standoff between political pressure and central bank independence.

This dynamic underscores the complexity of monetary policy in a politically charged environment, with significant implications for economic growth, inflation, and market stability.

Key Citations

• Trump slams Jerome Powell after Fed holds rates steady

• Trump says interest rates 'should be 2.5 points lower'

• Fed's Interest-Rate Approach Keeps It on Collision Course

• Fed decision live: Powell cites Trump tariff impacts

• Fed holds rates steady, eyes Trump tariff risks

• Fed expected to hold rates steady, brushing off Trump's calls

• Pres Trump says pick for next Fed chair coming very soon

• President Trump calls for a full 100 basis point Fed cut

• Trump reiterates Fed should cut rates

• Trump calls for immediate interest rate cuts

• Trump calls on Fed Chairman to cut rates

• Trump Statements on Federal Reserve

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