President Donald Trump has once again taken aim at the Federal Reserve, slamming its approach to interest rate cuts as too slow and insufficient to boost the struggling U.S. economy. In a recent statement, Trump expressed frustration with Fed Chair Jerome Powell, accusing him of failing to act decisively amid economic challenges.
Trump’s criticism comes as the latest jobs report showed unexpected resilience in the labor market, diminishing the likelihood of an immediate rate cut. Despite this, the President insisted that a jumbo rate cut—potentially as much as a full percentage point—is necessary to stimulate growth and ease borrowing costs for businesses and consumers.
The call for aggressive monetary policy follows a period of economic uncertainty, with Trump arguing that lower rates could counteract the impact of his proposed tariffs and other trade policies. He highlighted that Europe and other regions have already implemented multiple rate reductions in 2025, leaving the U.S. at a competitive disadvantage.
However, analysts remain skeptical about the feasibility of such a significant cut. A strong jobs report, with 139,000 new jobs added and an unemployment rate of 4.2%, suggests the Fed may hold steady to avoid stoking inflation, which remains a concern amid Trump’s trade policies.
Market reactions have been mixed, with some investors hopeful that pressure from the President could influence Fed decisions, while others fear that rapid rate cuts could destabilize the economy. Bitcoin, often seen as a hedge against monetary policy shifts, has neared $105,000 as speculation around rate cuts grows.
As Trump continues to push for immediate action, the tension between the White House and the Federal Reserve is likely to intensify. With the President hinting at a potential replacement for Powell, the future of U.S. monetary policy hangs in a delicate balance.
Andrew Lee
