President Donald Trump hammered Federal Reserve Chair Jerome Powell on Monday for not lowering interest rates, contending that he is keeping them artificially high.
The Federal Reserve Board declined to lower interest rates in May, keeping them at the current target of 4.25 to 4.5 percent, Fox Business reported.
Forbes reported that the last time the Fed cut the rate was in December by 25 basis points, or 0.25 percent. That cut was on top of another 25 basis point reduction on Nov. 7, after the election, and a 50-point cut in September.
The Consumer Price Index had risen 2.4 percent year-over-year as of September, which was the same rate it rose as of May. The CPI rose 0.1 percent last month compared to April.
In a public note to Powell, written on a chart of other nations’ interest rates around the world, Trump wrote, “Jerome, you are, as usual, ‘too late.’ You have cost the USA a fortune — and continue to do so.”
“You should lower the rate — by a lot! Hundreds of billions of dollars being lost! No inflation,” he added.
Donald J. Trump Truth Social 06.30.25 01:09 PM EST
Jerome “Too Late” Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States. They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And… pic.twitter.com/hXKHbZ7R9l
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 30, 2025
Republican Sen. Bernie Moreno of Ohio, who serves on the Senate’s banking and budget committees, told Fox News last week that the Federal Reserve’s decision to keep the interest rate at the current level is costing the American taxpayer over $400 billion per year in interest payments on debt.
Do you agree with Trump about interest rates?
Former President Joe Biden’s Treasury Department financed an increasing share of deficit spending by selling short-term bonds.
“If we just lowered our rates to where Japan is, who has higher inflation…we would save hundreds of billions of dollars,” Moreno said.
The data is clear, Donald Trump has inflation under control. But Jerome Powell is costing this county hundreds of BILLIONS of dollars every year by refusing to cut rates—and working families are paying the price.
He should do the right thing and resign. pic.twitter.com/8kuf73JrW6
— Bernie Moreno (@berniemoreno) June 27, 2025
White House Press Secretary Karoline Leavitt held up and read Trump’s message to Powell during her Monday briefing.
She noted that Switzerland, Japan, China, and the United Kingdom are among the many nations paying a lower interest rate than the U.S.
Karoline Leavitt holds up a letter that President Trump penned to Fed Chair Jerome Powell, slamming him for refusing to lower interest rates.
“Jerome, you are, as usual, too late; you have cost the USA a fortune!” pic.twitter.com/q5ZVCK9asY
— Media Research Center (@theMRC) June 30, 2025
A reporter asked Leavitt why Trump simply does not fire Powell, whose term officially ends in May 2026, and put in someone who will lower interest rates.
“Well, it’s a good question, and one you could ask the president, because that’s a decision for him to make. But you’re right to point out the politicization of the Fed. And it’s very unfortunate for our country,” the press secretary responded.
“Jerome Powell cut rates numerous times ahead of the election when Joe Biden was in this Oval Office, but now he refuses to when the economy is in a much better place. So, there really isn’t a good explanation for that, and the president is rightfully calling attention to it,” Leavitt added.
.@JFRadioShow: “You outlined Jerome Powell and the note that the President just sent to him. There are many who believe that Powell has been politicized in a lot of different ways. The president has not been shy about acting on things that he’s — believes in. Why not just fire… pic.twitter.com/UJXHWFCFyV
— Curtis Houck (@CurtisHouck) June 30, 2025
Powell stated earlier this month that the reason the Federal Reserve Board has not lowered interest rates yet is because it wants to monitor the effects of Trump’s tariffs on inflation.
Powell: Everyone I know is forecasting a meaningful increase in inflation in the coming months from tariffs. Because someone has to pay for the tariffs.. some of it will fall on the consumer. We know that’s coming. pic.twitter.com/4jpIvS7VXe
— Acyn (@Acyn) June 18, 2025
Commerce Secretary Howard Lutnick reinforced Trump’s message to Powell, asking on social media, “Why do we have one of the highest central bank rates in the world?”
“We have a roaring economy, low inflation, trillions of dollars in new investment, and $88 billion in tariff revenue,” he added.
Why do we have one of the highest central bank rates in the world? We have a roaring economy, low inflation, trillions of dollars in new investment, and $88 billion in tariff revenue. Jerome Powell is a member of the “expert class,” which has been wrong about Trump at every turn.… pic.twitter.com/JOLqsxKYNh
— Howard Lutnick (@howardlutnick) June 30, 2025
“Jerome Powell is a member of the ‘expert class,’ which has been wrong about Trump at every turn. This situation is very sad for our country. Both Powell and the board should be ashamed of themselves.”
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