Trump Urges Fed Rate Cuts Before Powell's Congress Testimony

Trump Calls for Lower Interest Rates Ahead of Powell's Testimony

Former U.S. President Donald Trump stated that interest rates in the United States should be reduced by at least two to three percentage points, just before Federal Reserve Chair Jerome Powell is set to testify before Congress.

"We should be at least two to three points lower...if things later change to the negative, increase the Rate," Trump posted on Truth Social.

Powell's Testimony and Fed's Outlook

Powell is scheduled to appear before Congress on Tuesday and Wednesday. This follows weeks of remarks from Trump pushing for rate cuts, which have fueled concerns on Wall Street regarding the Fed's direction when Powell's term concludes next May.

Last week, the Fed decided to hold rates steady in the 4.25%-4.50% range and suggested two cuts by the close of 2025. However, Powell anticipates "meaningful" inflation due to consumer expenses on goods as a result of Trump's planned import tariffs.

Trump's comments on interest rates also come after the announcement of a ceasefire between Israel and Iran.