Former U.S. President Donald Trump has called for significantly lower borrowing costs, arguing that current interest rate levels are too high and are placing undue pressure on the American economy. Trump emphasized that reduced rates would support growth, ease debt burdens, and enhance the country’s competitive edge in the global market.
Trump Criticizes Fed Chair Powell, Calls for Substantial Rate Cuts Amid Tepid Job Growth
On Friday, former U.S. President Donald Trump took to his social media platform, Truth Social, to voice strong criticism of Federal Reserve Chairman Jerome Powell, urging a significant reduction in interest rates. Trump argued that current borrowing costs are excessively high and are placing an unnecessary burden on the U.S. economy.
“There is virtually no inflation anymore, but if it does return, raise rates to counter it. Very simple!!! He is costing our country a fortune. Borrowing costs should be much lower,” Trump wrote, making a direct appeal for a more accommodative monetary policy.
Trump’s remarks came on the heels of new labor market data released by the U.S. Bureau of Labor Statistics (BLS). The report revealed that Nonfarm Payrolls grew by 139,000 in May—below many economists’ expectations and a signal that job growth may be cooling. Adding to the concerns, the BLS revised downward the employment gains for March and April by a combined total of 95,000 jobs.
These figures underscore a labor market that, while still expanding, may be losing momentum. Coupled with recent signs of easing inflationary pressures, Trump’s call for interest rate cuts aligns with the sentiment among some investors and analysts who argue that the Federal Reserve should shift its focus toward stimulating economic activity.
Trump’s latest commentary reflects his longstanding position on monetary policy. During his presidency, he frequently criticized the Fed for being too slow to cut rates, especially as global economic uncertainties mounted. With the economy now facing mixed signals—moderate job growth, softening inflation, and slowing consumer spending—calls for a pivot in Fed policy are likely to grow louder ahead of upcoming FOMC meetings.
As markets digest both the jobs data and Trump’s remarks, attention will turn to the Federal Reserve’s next move. Whether Chairman Powell will heed calls for easing or maintain the current stance in pursuit of long-term economic stability remains to be seen.
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