US President Donald Trump on Wednesday renewed his criticism of Federal Reserve Chairman Jerome Powell, urging an immediate and aggressive cut in benchmark interest rates.
In a Truth Social post, Trump wrote: “Just out: No Inflation!!! ‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!”
The comments came alongside new labour market data that showed employment gains slowing further. BMO economist Sal Guatieri noted the report “gives the Fed another reason to lower rates,” adding that the case for more cuts by year-end now looks stronger than the two that Fed policymakers had projected in June.
Markets continue to bet heavily on rate reductions. Traders expect the Fed to trim the policy rate — currently at 4.25%-4.50% — by 25 basis points at its September 16–17 meeting, followed by another similar cut in October.
The Fed has been under pressure to support the economy, with concerns mounting that the slowdown in job creation began even before Trump’s tariff hikes on imports.
