June 6, 2025
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4:55Now PlayingPriya Misra, Portfolio Manager of the Core Plus Fund at JPMorgan Asset Management, looks ahead to the jobs report and explains why she believes the Fed will be late to cutting rates as the economy slows.
President Donald Trump urged the Federal Reserve to cut rates by a full percentage point, intensifying his pressure campaign against Chair Jerome Powell.
“‘Too Late’ at the Fed is a disaster!” Trump posted Friday on social media, using a derisive nickname for Powell. “Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!”
While the size of Trump’s demand — a full percentage point — was unusual, his call for the central bank to lower rates is not new. The president has regularly mocked Powell over his resistance to rate cuts.
Fed officials are scheduled to meet June 17-18 in Washington and are widely expected to leave their benchmark rate unchanged, as they have done all year. Many policymakers have said they want to wait for more clarity over how Trump’s policies on trade, immigration and taxation will affect the economy before they alter rates.
Trump, in a subsequent message, accused Powell of “costing our Country a fortune” by keeping rates at their current level, saying they have increased borrowing costs for the federal government that “should be MUCH LOWER!!!”
“If ‘Too Late’ at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. There is virtually no inflation (anymore), but if it should come back, RAISE ‘RATE’ TO COUNTER. Very Simple!!!” he posted.
Trump posted his call after new data showed US job growth moderated in May and prior months were revised lower, indicating employers are cautious about growth prospects under Trump’s economic policies.
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