US President Donald Trump called on the Federal Reserve on Thursday to make a “big” and immediate cut in interest rates, a day after the institution decided to keep them unchanged.
In a post on his social media platform “Truth Social,” he said: “The Federal Reserve should cut interest rates substantially, now!”, adding that there is “absolutely no reason” for the institution not to take this step.
Trump criticized the Fed Chair, saying: “(The very late) Jerome Powell once again refused to cut interest rates, even though he has no reason to keep them so high,” noting that Powell “acknowledges that inflation is no longer a problem or a threat.” Meanwhile, the Fed had stated in its Wednesday announcement that “inflation remains somewhat elevated.”
Fed: Economic activity is expanding at a solid pace
The Federal Reserve kept interest rates unchanged on Wednesday at its first monetary policy committee meeting of the year, confirming the strength of economic growth.
The committee voted 10 to 2 to keep the interest rate within the range of 3.50% to 3.75%. Officials noted that the unemployment rate showed “signs of stabilization,” while economic activity continued to “expand at a solid pace.”
Trump’s statements come as his administration escalates pressure on the Federal Reserve; the President is seeking to remove Lisa Cook, a member of the Fed’s Board of Governors, over allegations related to a mortgage loan, while the Justice Department has launched an investigation into Powell concerning maintenance and renovation work at the institution’s headquarters.
Donald Trump
Donald Trump is a businessman and television personality who served as the 45th President of the United States from 2017 to 2021. His presidency was marked by a populist “America First” agenda, significant tax reforms, and a distinctive, often controversial, communication style.
Federal Reserve
The Federal Reserve is the central banking system of the United States, established in 1913 by the Federal Reserve Act to provide the country with a safer, more flexible, and more stable monetary and financial system. It conducts national monetary policy, supervises and regulates banks, and works to maintain the stability of the financial system.
Truth Social
Truth Social is a social media platform launched in February 2022 by Trump Media & Technology Group. It was founded by former U.S. President Donald Trump as an alternative to mainstream platforms following his suspension from Twitter and Facebook. The platform emphasizes free speech and is designed to cater to a conservative user base.
Jerome Powell
Jerome Powell is the current Chair of the Federal Reserve, the central banking system of the United States. He was appointed to the role in 2018, having previously served as a member of the Federal Reserve Board of Governors since 2012.
Lisa Cook
Lisa Cook is an American economist who was appointed to the Board of Governors of the Federal Reserve System in 2022, becoming the first Black woman to serve on the board. Her research has focused on economic history, innovation, and the economic impacts of racial violence and discrimination.
Justice Department
The Justice Department is the executive department of the United States federal government responsible for the enforcement of the law and administration of justice. It was established in 1870 during the presidency of Ulysses S. Grant to oversee federal law enforcement, legal affairs, and corrections.
