Trump Requests Fed to Cut Interest Rates by 3% - Says Powell Should Resign

U.S. President Donald Trump is still angry about Federal Reserve Chairman Jerome Powell's refusal to cut interest rates. Speaking on Truth Social on Tuesday, Trump stated that the Fed needs to cut interest rates aggressively—and made it clear that he will not back down. Powell Criticized by Trump for 'Mistake' on Trillion-Dollar Interest Rates "I think if Jerome Powell resigns it would be a great thing," Trump said to the press on Monday. "I don't know if he will do that - but he should. Jerome Powell has caused a lot of bad things for our country." Trump criticized the Federal Reserve for keeping interest rates too high, arguing that the United States should have the lowest interest rates in the world. He criticized the Fed for spending billions of dollars on headquarters while mishandling economic policy. Furthermore, Kevin Hassett, one of Trump's economic advisers, also said over the weekend that the president might have grounds to fire Powell because of this expensive renovation. Trump claimed he, along with another economist, accurately predicted the recovery of the economy, and stated that the Fed's advisers were completely wrong. Trump continues: "I call him 'Too Late'. He is always too late. Every point costs us 360 billion dollars. Just think about it. We should have been lower by three points - that is close to a trillion dollars... Are you telling me he will resign? I hope he will resign. I don't know if he will resign - but he should. He has caused a lot of bad things for the country." In essence, Trump is calling for cutting down the whales because he sees Jerome Powell —and the current high interest rates— as a major barrier to the booming economy he wants to take credit for. He believes that Powell's approach is harming the national economy, and he is looking forward to the economic boost that significant cuts could bring — while still trying to regain control over an institution that he believes is disregarding him. After considering on Monday, Trump continued to make comments on Truth Social the next day, once again advocating for the fall in interest rates, stating: "The Fed should cut interest rates by 3 points. Inflation is very low. Saving one trillion dollars each year!!!" Despite Trump's harsh statements, the U.S. central bank has shown no signs of changing the federal funds rate. CME Group's FedWatch tool gives a betting rate of up to 97.4% that the Fed will keep rates unchanged at the meeting on July 30, 2025.