Trump again asks Powell to lower interest rates

He claims that inflation no longer exists in the US, and if prices were to rise, simply raising the price of money again would solve the problem.

US President Donald Trump on Friday called Federal Reserve Chairman Jerome Powell's work a "disaster" and reiterated his call for him to follow Europe's example by lowering interest rates because there is "virtually no inflation" in the US.

Trump returned to the fray against Powell in two morning posts on his Truth Social network, where he did not refer to him by name, but did use the "Too Late" nickname he often uses for the economist.

"If the Fed's 'Too Slow' were to cut, we would dramatically reduce interest rates, both short-term and long-term, on maturing debt," he said, noting that former Democratic President Joe Biden (2021-2025) "was primarily focused on the short term."

According to Trump, the country "has virtually no inflation (not anymore), but if it comes back, THE RATE IS RAISED TO COUNTERACT IT. Very simple!"

He also asserted that the Fed's delay in lowering rates "is costing the country a fortune" and complained that "borrowing costs should be MUCH LOWER!"

"The Fed's 'Too Late' is a disaster! Europe has had 10 rate cuts, we have had none. Despite this, our country is doing great," he wrote a few minutes earlier in another post on Truth Social.

Trump has repeatedly urged the Fed to lower rates, which are currently in the 4.25% to 4.5% range. The next meeting of the Federal Open Market Committee (FOMC) to consider possible rate hikes or cuts will take place on June 17 and 18.

Two days ago, the president had already called for a rate cut in the face of stagnant private employment, according to a report from payroll processing firm ADP, which reported an increase of only 37,000 jobs in May, well below the 110,000 forecast by analysts.

Trump has engaged in public clashes with Powell, whom he has not only criticized for acting too late, but has also claimed to know more than he does, called him a "fool," and threatened to fire him, something the law prohibits. Meanwhile, the Fed chairman has defended the institution's independence.

Last week, the two met face to face for the first time since the Republican returned to power last January.

The Fed has already announced that it expects "one or two rate cuts" by the end of the year.