Trump Pressures ‘Too Late’ Powell to Slash Rates by 1%

Following this morning’s stronger-than-expected nonfarm payrolls report, President Trump continues to pressure the Fed to cut rates.

“‘Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!,” said Trump on Truth Social. “Too late” is a reference to Fed Chair Jerome Powell, who Trump has previously referred to as “Too Late Powell.”

In a later post, Trump added that inflation has been contained, but if it were to come back, the Fed could “RAISE ‘RATE’ TO COUNTER. Very Simple!!!” He also accused Powell of “costing our Country a fortune” because a lower federal funds rate would result in lower interest payments on U.S. debt that will soon be due.

Rate Cut Odds Fall Following Nonfarm Payrolls Report

However, the job report will likely influence the Fed to keep rates unchanged instead of cut them. With a resilient labor market, the Fed is less inclined to cut rates because cutting rates is seen as a tool to stimulate the economy. In addition, several Fed members have voiced their opinion that economic uncertainty and inflation risks have increased as a result of tariffs, which would support the argument for an unchanged or higher rate.

CME’s FedWatch tool now assigns a 99.9% chance that the Fed will leave rates unchanged between 4.25% and 4.50% at the July 18 Federal Open Market Committee (FOMC) meeting, up from 96.6% compared to yesterday. The tool assigns an 83.4% chance that rates will remain unchanged at the July 30 meeting, up from 68.6% yesterday.

Head over to TipRanks’ Economic Indicators Dashboard to keep track of the latest economic metrics.