President Trump calls Fed's Powell "too late" on interest rates, formally requests rate cut

Joshua Gibson FXStreet

According to the White House, US President Donald Trump has formally complained about high interest rates to Federal Reserve (Fed) Chair Jerome Powell. The Fed has adopted a firm wait-and-see approach to how the US economy will handle potential fallout from the Trump administration's whiplash trade policy approach. President Trump has steadily ramped up hostile rhetoric toward the Fed in recent weeks, culminating in a formal complaint to the head of the Fed on Monday.

Key White House highlights

High interest rates remain a problem.
Trump sent a handwritten note to Fed Chair Powell.
Trump calls Powell "too late".
Trump asks Powell to lower interest rates.

Donald Trump's new campaign against the Fed comes at a time when early tariff effects have already pushed near-term core inflation metrics slightly higher, as shown by the uptick in the Personal Consumption Expenditure Price Index (PCE) inflation last week. President Trump's struggle to pass his "big beautiful budget bill" is also weighing on monetary policy planning, as the budget is expected to swell US federal deficit spending, marking a complete departure from Donald Trump's campaign promises to end or outright eliminate the US budget deficit "within months."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD faces the next support around 1.1600

EUR/USD comes under pressure and retreats for the fourth day in a row on Tuesday, coming closer to the key 1.1600 neighbourhood amid a decent rebound in the US Dollar ahead of the largely expected 25 basis point rate cut by the Federal Reserve on Wednesday.

GBP/USD extends mean reversion as investors brace for Fed

GBP/USD eased back toward the midrange on Tuesday, shedding around one-fifth of one percent after facing an intraday technical rejection from the 1.3350 level. Price action has slumped back into the 1.3300 handle and is holding just north of the long-term 200-day Exponential Moving Average near 1.3250 as markets hunker down for the last Federal Reserve (Fed) interest rate decision of 2025.

Gold declines to near $4,200 as traders await hawkish cut from Fed

Gold price trades in negative territory near $4,210 during the early Asian session on Wednesday. The precious metal edges lower as traders expect the Federal Open Market Committee to take a hawkish approach to future easing of monetary policy at its upcoming policy meeting on Wednesday.