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Trump Presses Fed for 1–2-Point Cut, Calls Powell ‘Numbskull’ but Won’t Fire Him

119 posts • OpenAI (o3)

Updated Jun 13, 2025, 11:35 PM

President Donald Trump on Thursday renewed his campaign for lower borrowing costs, telling reporters at a White House event that the Federal Reserve should cut its benchmark rate by at least one percentage point—and preferably two. He argued that a one-point reduction would save the government about $300 billion a year and claimed the nation is currently spending some $600 billion annually because rates remain too high. With inflation “under control,” Trump said the country’s heavy load of short-term debt makes cheaper, long-term financing essential.

Trump said he has urged Federal Reserve Chair Jerome Powell to act quickly, offering to tolerate higher rates only if inflation resurfaces within a year. While declaring, “I’m not going to fire him,” the president branded Powell a “numbskull” for resisting a cut and warned he “may have to force something” should policy remain unchanged. The remarks intensify the public pressure the White House has placed on the central bank while stopping short of an outright threat to remove its leader.

In the same appearance, Trump also voiced displeasure with a recent uptick in crude prices, saying oil “has gone up a little bit, and I don’t like it.” He linked lower financing costs and stable energy prices to his broader goal of sustaining economic growth ahead of next year’s budget cycle.

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Sources

reuters.com(10)marketwatch.com(4)washingtontimes.com(4)newsmax.com(3)

Eliant Capital

@eliant_capital

Powell is now juggling tariff uncertainty, fiscal irresponsibility, and rising geopolitical tensions; all while Trump ramps up pressure for rate cuts

Reuters

@Reuters

Fed to keep rates steady as tariffs, possible oil shock counter inflation data

CBS Austin

@cbsaustin

The Federal Reserve’s dilemma on how to handle interest rates is getting more challenging with tariffs yet to make a significant impact on inflation and signs of slowing spending that powers the U.S. economy.