Trump on Powell & Interest Rates: No Firing, But Cut Demands Continue
Donald Trump will not fire Federal Reserve Chair Jerome powell, but the former President continues to demand interest rate cuts, according to reports from a White house event. Trump, despite earlier murmurs, affirmed his decision, though he remains critical of the Federal Reserve’s pace, especially as inflation cools. The primarykeyword here is “Fed rate cuts”, which Trump strongly advocated for. Trump’s frustration stems from the rising costs of government borrowing, a point he actively made, suggesting the central bank could later increase rates if needed, demonstrating his clear opinion on monetary policy. this conflict, against the backdrop of economic data, highlights the tensions between the White House and the Federal Reserve. For more updates on the story,including potential impacts of Trump’s policies,such as secondarykeyword “tariffs”,check out News Directory 3. Discover what’s next as the Federal Reserve navigates these pressures.
Trump Affirms No Powell Firing Despite Fed Rate Cut Frustration
Updated June 12, 2025
President Donald Trump stated Thursday he does not intend to fire Federal reserve Chair Jerome Powell, despite earlier indications he might soon select Powell’s successor. Trump has repeatedly voiced his desire for the Fed to implement Fed rate cuts.
Speaking at a White House event, Trump addressed speculation, saying, “The fake news is saying, ‘Oh, if you fired him, it would be so bad.’ I don’t know why it would be so bad, but I’m not going to fire him.”
Trump also repeated his criticism that the Fed has been too slow to cut interest rates, especially as evidence of cooling inflation emerges. Powell’s term is set to conclude in May 2026. The president expressed frustration that current interest rates are increasing the federal government’s borrowing costs,advocating for potential Fed rate cuts.
He suggested the Fed could always raise rates later if inflation were to resurface.”Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,” Trump said. “He’ll be too late for that too.”
Last month,the Supreme court protected the Fed from presidential intervention,classifying it as a “uniquely structured,quasi-private entity.” This decision offered clarity regarding Powell’s job security,following conflicting signals from Trump about potentially ousting him before his term ends. In April, Trump had stated he had no plans to fire Powell.
federal Reserve officials are expected to maintain stable interest rates at their upcoming two-day policy meeting. Powell and his colleagues have indicated they are awaiting further clarity on the economic impact of Trump’s policy changes—including tariffs, taxes, and immigration—before making any adjustments to interest rates, including potential Fed rate cuts.
What’s next
The Federal Reserve will continue to monitor economic data and global events to determine the appropriate course for monetary policy, balancing the risks of inflation and economic slowdown.