Trump demands big interest rate cut ahead of Fed meeting
The president again called for a rate cut, although he now urges that it be larger than what central bank Chairman Jerome Powell had planned.
Donald Trump with Jerome Powell in 2017
President Donald Trump again demanded a big interest rate cut ahead of the Federal Reserve meeting, scheduled for this Tuesday and Wednesday.
Through a message on Truth Social, Trump continued to press the central bank, urging Federal Reserve Chairman Jerome Powell, to undertake a bigger cut than he had planned.
Powell "MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!" said Trump. He again referred to the chairman as "Too Late."
As reported by AFP, the market is expecting a cut of about 25 basis points right after the meeting ends on Wednesday. Powell is the focus of attention for comments he may make after the meeting concludes.
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If the rate cut is confirmed, it would be the first in 2025.
Since returning to the White House as president, Trump has insisted on the need to lower interest rates. So far, Powell has not relented, resulting in tensions between Washington and the central bank.
However, in late August, the Fed chairman hinted that he would apply a rate cut, although he warned of certain risks that could occur if he makes such a decision.
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