“Too late” Powell may finall be ready to lower interest rates.
President Donald Trump on Friday expressed confidence that the Federal Reserve will soon begin cutting interest rates, just one day after meeting with Fed Chair Jerome Powell.
Trump described the meeting as positive and signaled that the central bank appears ready to deliver the rate cuts he’s been pushing for.
“I think we had a very good meeting on interest rates. And [Powell] said to me … very strongly, the country is doing well,’” Trump told reporters. “I got that to mean that I think he’s going to start recommending lower rates.”
Watch the clip below:
.@POTUS on meeting with Jerome Powell yesterday: "I think we had a very good meeting on interest rates… He said to me, very strongly, 'The country is doing well' … And I got that to mean that I think he's going to start recommending lower rates." pic.twitter.com/Q8ZmYQw7QV
— Rapid Response 47 (@RapidResponse47) July 25, 2025
Fed Chair Jerome Powell and other policymakers have been hesitant to cut rates, citing the need to assess the inflationary impact of Trump’s tariffs. Powell has argued that the economy remains strong enough to endure higher rates while officials monitor evolving data.
Before Trump’s latest comments, White House budget director Russell Vought ramped up pressure on the Fed—calling for both a review of its operations and a push for rate cuts. He echoed Trump’s call for monetary easing to support the broader economy, particularly the struggling housing market.
“There’s a whole host of issues with regard to the Fed, and we want to make sure that those questions get answered over time,” Vought said during the Squawk Box appearance. “This is not a pressure campaign on the Fed chairman.”