Trump Blasts ‘Dumb’ Powell, Demands 2-3 Point Rate Cuts

President Donald Trump called for immediate interest rate cuts of two to three percentage points on June 24, hours before Federal Reserve Chair Jerome Powell's scheduled testimony to Congress.

Trump posted on Truth Social that Europe “has had 10 cuts, we have had ZERO” and claimed lower rates would save “$800 billion per year.” He told lawmakers to “really work this very dumb, hardheaded person over.”

The House Financial Services Committee will question Powell at 10:00 a.m. EST on June 24. The Senate Banking Committee hearing is set for June 25.

The Federal Open Market Committee (FOMC) kept its target rate range at 4.25% to 4.50% at its June 18 meeting. The Fed said it would carefully assess incoming data before making any changes. This marks the fifth consecutive meeting without a rate change.

The European Central Bank has cut its deposit rate eight times since June 2024, bringing it to 2.0% on June 5. The Fed made zero cuts during the same period. The Fed’s quarterly projections show officials still anticipating two quarter-point cuts before year-end, but only if price pressures subside. Powell previously warned Congress that planned tariff increases could add “meaningful” price pressure. 

Powell's current term as Fed Chair expires in May 2026. Trump criticized Powell during his first presidency and has continued the criticism since returning to office. Powell typically maintains that monetary policy decisions rely on economic data rather than political pressure. The Fed has upheld this position despite increasing pressure from the White House for rate cuts.

Related: Trump Administration to Launch Fed Chair Search in Fall 2025

Lawmakers on both banking panels are expected to question Powell about the timing of any rate cuts, the impact of tariffs, and the Fed’s updated economic outlook. While some Republicans echo Trump’s call for aggressive easing, several Fed governors indicated that reductions could begin later this summer only if inflation continues to trend lower. Crypto traders are likely to watch Powell’s testimony closely, as any dovish shift could trigger renewed inflows into digital assets.