The Federal Reserve Chairman Jerome Powell received a harsh handwritten message from former U.S. President Donald Trump on Monday, expressing his frustration at the Fed’s failure to decrease interest rates. In the letter, Trump accused Powell of being “too late” and of costing the United States “a fortune” by delaying rate cuts. Powell, he pleaded, should “lower the rate by a lot!”
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Trump Compares U.S. Rates to Other Nations
Trump also attached a note listing interest rates in countries such as Switzerland, Cambodia, Japan, Denmark, Seychelles, and Thailand, with rates ranging from 0.25% to 1.75%.
White House Press Secretary Supports Trump’s Criticism
Trump’s dissatisfaction was shared by White House Press Secretary Karoline Leavitt, who handed reporters his message during a recent press briefing. Powell was accused of playing politics by lowering interest rates prior to the 2024 election but declining to do so at this time, despite the fact that the economy is, in her words, “in a much better place” as a result of Trump’s initiatives.
High borrowing rates continue to be one of the few challenges in an otherwise robust economy, Leavitt underlined
Fed’s Outlook and Powell’s Remarks on Tariffs
The Fed has maintained its rate cuts since early 2025, although it made multiple rate cuts in 2024 as inflation decreased. Officials have voiced concerns about potential inflation threats and slower economic growth, but they still expect two rate cuts later this year.
According to Chairman Powell, the result of trade negotiations will determine the long-term consequences, but he has cautioned that Trump’s additional tariffs may cause short-term inflation. By July 9, those tariff rates are anticipated to be decided.