Overview
- On June 7, President Trump called for a one percentage point cut in the federal funds rate to lower borrowing costs for consumers and businesses.
- He labeled Fed Chair Jerome Powell “Too Late” and urged a “rocket fuel” rate slash, pointing to Europe’s recent series of rate reductions.
- The June 6 labor report showed employers added 139,000 jobs in May and the unemployment rate held at 4.2%, easing but not eliminating growth concerns.
- Minutes from early May confirm the Fed’s target range remains at 4.25 percent to 4.50 percent and signal policymakers will likely hold rates at the June 17–18 meeting.
- The standoff underscores tensions between Trump’s growth push and the Fed’s caution over inflation against a $36.21 trillion U.S. debt backdrop.