President Donald Trump is again pressuring Federal Reserve Chair Jerome Powell to lower interest rates, suggesting Powell has the authority to do so before the Fed’s next scheduled meeting.
The Federal Reserve is set to meet next week. While Powell is a key voice, the board’s seven members collectively decide whether to change rates.
“Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping interest rates, IMMEDIATELY, not waiting for the next meeting!” Trump wrote Thursday on Truth Social.
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Trump’s remarks came hours after the Bureau of Labor Statistics reported that the consumer price index rose 2.4% in the 12 months ending in February. That rate has held relatively steady but is slightly above the Fed’s 2% inflation target.
The consumer price index is one of the key measures the Fed considers when making interest rate decisions, alongside employment data. Higher inflation or a weakening job market can influence whether the board raises or lowers rates.
Also Thursday, mortgage-finance giant Freddie Mac said the average rate for a 30-year fixed mortgage increased to 6.11%. Mortgage rates are not directly set by the Fed but are often influenced by its actions.
Next week will be among Powell’s final meetings as Fed chair. In January, Trump said he would nominate Kevin Warsh to replace Powell.
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Powell is expected to serve as chair until May 2026 and could remain on the Fed’s board as a governor until 2028.
Lower interest rates can stimulate economic growth by making borrowing cheaper. But policymakers caution that keeping rates low for too long can fuel inflation.
After U.S. inflation topped 9% in 2022, the Fed raised rates to their highest level in decades. Inflation has since fallen below 3%, but higher borrowing costs have made it harder for consumers and businesses to access credit — often slowing job growth. Powell has said the Fed’s goal is to balance low inflation with continued employment gains.
