Trump Demands Fed’s Powell Cut Interest Rates or Resign

Washington, D.C. — President Donald Trump escalated his feud with Federal Reserve Chairman Jerome Powell on Monday, demanding significant cuts to interest rates. In a handwritten note, Trump urged Powell to either lower rates substantially or resign before his term ends next May.

“Jerome – You are, as usual, ‘too late.’ You have cost the USA a fortune – and continue to do so,” Trump wrote on his social media platform. He criticized the Fed’s current interest rate policies compared to other countries, suggesting that the U.S. should be paying around 1%.

During a daily press conference, White House spokeswoman Karoline Leavitt reiterated the administration’s pressure on Powell. “We should be paying 1% interest or better,” Trump stated, emphasizing the need for more aggressive monetary policy.

Treasury Secretary Scott Bessent addressed the media, clarifying that there are currently no plans to fire Powell despite Trump’s past threats. “The president has no right to fire him,” Bessent noted. However, he hinted at the possibility of appointing a new member of the Fed Board of Governors in January when one term expires.

Bessent dismissed questions about the potential of appointing a board member as a new Fed chair, saying, “Obviously there are currently people at the Fed who are under consideration.” He added that the Fed’s cautious approach is due to uncertainties surrounding Trump’s trade policies and their effects on inflation.

This demand for rate cuts comes as Trump continues to advocate for measures to stimulate the economy amidst ongoing trade tensions.