Trump Pushes Fed for Big Rate Cuts Ahead of Key Meeting

President Donald Trump renewed his call for a significant interest rate cut, directly challenging Federal Reserve Chair Jerome Powell just one day before the central bank’s critical two-day policy meeting.

On Truth Social, Trump criticized Powell as “too late” in lowering rates, a label he has repeatedly used, and urged a cut “bigger than he had in mind.”

Economists widely expect the Fed to reduce the benchmark lending rate by 25 basis points, marking the first rate cut of 2025.

The central bank has kept rates steady since December while monitoring the effects of Trump’s wide-ranging tariffs on inflation.

Inflation remains above the Fed’s long-term 2% target, but the tariffs’ impact has been relatively limited.

The rate decision comes as the U.S. jobs market shows signs of weakening, putting pressure on the Fed to support economic growth while maintaining price stability.

Markets and policymakers are closely watching how Powell balances the dual mandate of maximum employment and stable inflation, knowing that even small moves could have broad implications for investors, consumers, and global markets.