June 7, 2025

trump urges powell to cut interest rates

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President Trump says it’s time for the Fed to catch up—and cut rates by a full percentage point.

With the European Central Bank slashing interest rates for the tenth time, former President Donald Trump is sounding the alarm: the U.S. Federal Reserve is falling behind, and it’s putting the American economy at risk.

In a series of pointed posts on Truth Social this week, Trump slammed Fed Chairman Jerome Powell, calling him “Too Late Powell,” and demanded immediate action.

“’Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point—Rocket Fuel!” Trump wrote on Friday.

Trump on TruthSocial too late interest rate cuts

The comments came just hours after the Labor Department’s May jobs report showed a moderate 139,000 jobs added—better than expected, but still below the prior month’s revised total. Trump also referenced dismal ADP private sector figures earlier in the week, where just 37,000 jobs were created—the weakest showing in over a year.

Trump Pushes for Urgent Action

The former president’s critique isn’t just about optics—it’s rooted in strategy. Trump argues that aggressive rate cuts could spark economic momentum, reduce the burden of government debt, and give the U.S. a competitive edge in global markets.

“If ‘Too Late’ at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due,” Trump posted. “There is virtually no inflation (anymore), but if it should come back, RAISE 'RATE' TO COUNTER. Very Simple!!! He is costing our Country a fortune.”

The swipe at Powell comes at a critical time. With inflation moderating and the European Central Bank already cutting rates by a full 2% since last summer, many are questioning why the U.S. is standing still.

Related: Trump Trade War Returns - Fed Warns of Slowing Growth

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Fed Holds Steady While Europe Moves

The Federal Reserve has kept its benchmark interest rate between 4.25% and 4.50% since December 2024 and is widely expected to hold rates steady again at the upcoming June 17–18 meeting. Fed officials say inflation remains a top concern—even as job growth slows and debt costs rise.

Meanwhile, the ECB’s recent rate cut brings its benchmark rate back to a “neutral” level of 2%, after nearly a year of reductions aimed at reviving sluggish European growth.

“Europe has lowered NINE TIMES!” Trump emphasized earlier in the week, accusing Powell of putting the U.S. at a strategic disadvantage.

Political Stakes and Economic Pressure

With Trump back in the White House and already taking heat for economic turbulence inherited from the Harris administration, the pressure is building.

Trump’s economic team, including White House Press Secretary Karoline Leavitt, has echoed his concerns, warning that America’s high interest rates are hurting competitiveness—especially against China and the EU.

“He believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage,” Leavitt said last week.

Yet despite Trump’s calls, markets are pricing in almost no chance of a rate cut this month, according to the CME FedWatch tool. Some policymakers have pointed to the uncertainty surrounding Trump’s proposed tariffs as a reason for their hesitation.

Related: DOJ Investigates Biden Autopen Scandal

Trump’s Strategy: Debt, Growth, and Common Sense

Trump’s latest remarks are consistent with a broader strategy: cut borrowing costs now while inflation is tame, refinance existing debt at lower rates, and stimulate the economy heading into the second half of 2025.

Whether Powell listens—or waits too long yet again—remains to be seen. But one thing is clear: President Trump is no longer sitting on the sidelines, and the Fed is officially on notice.

About the author 

Steve Walton

Steve Walton is a financial writer, gold bug, and cryptocurrency enthusiast. He's spent the last decade ghostwriting for financial publications across the web and founded SDIRAGuide.com to help Americans diversify into alternative assets like gold and bitcoin.

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