Trump Urges Fed to Cut Interest Rates by 2–3 Points Immediately

Trump: Fed Should Slash Interest Rates by 2–3 Points Now

June 25, 2025 – Washington D.C.
US President Donald Trump reiterated his long-standing criticism of the Federal Reserve’s monetary policy on Tuesday, stating that interest rates should be lowered by at least 2 to 3 percentage points. He added that the Fed could hike rates again if the economy showed signs of overheating later.

Trump Pressures the Fed Ahead of July Meeting

Speaking during a press event, Trump emphasized that aggressive rate cuts would support the economy and job creation. His comments come just weeks before the Federal Open Market Committee (FOMC) meets to decide on the next policy move.

“We should be at least two to three points back,” Trump said, referring to the current benchmark rate. “If things go wrong, the Fed can always raise again.”

Markets React as Dovish Tone Builds

While the Fed has remained largely independent, Trump's remarks echo growing market expectations of a July rate cut, especially as inflation remains controlled and growth shows signs of cooling.

Investors and analysts now await Fed Chair Jerome Powell’s upcoming testimony, which may shed light on whether Trump’s desired cuts align with internal FOMC sentiment.

What to Watch Next

• Powell's Semiannual Testimony to Congress
• US Inflation and Jobs Data
• Global Geopolitical Developments that could affect Fed’s outlook

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