The Fed has maintained the federal funds rate between 4.25% and 4.50% this year, although the central bank has faced mounting pressure from President Trump and other government officials to lower it.
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“The truth: President Trump inherited a far worse economy than reported, and he’s right to say the Fed is choking off growth with high rates,” Treasury Secretary Scott Bessent said in an X post on Tuesday. Bessent added that the Bureau of Labor Statistics overstated payrolls by 1.5 million jobs during former President Biden’s tenure after the federal agency released revisions for the 12 months ended March.
Trump Calls for 300 Bps Rate Cut
A lower Fed rate makes it cheaper to borrow money, which can stimulate the economy by encouraging investment and spending. The Fed is widely expected to cut rates by at least 25 bps during the September 16-17 Federal Open Market Committee (FOMC) meeting, although Trump has previously pushed for a 300 bps cut. Barring a miracle, that won’t happen.
“Jerome ‘Too Late’ Powell should have lowered rates long ago. As usual, he’s ‘Too Late!’” Trump said in a Truth Social post last Friday.
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