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Trump Demands Full-Point Interest Rate Cut as Powell Stands Firm

His demand illustrates the growing White House pressure on an independent Fed that is poised to hold rates steady over inflation concerns.

Federal Reserve Chairman Jerome Powell
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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.