Trump Wants Rate Cuts Now—And He’s Not Being Quiet About It
Just before the Federal Reserve was about to make one of its biggest calls in months, President Trump went off—again—on Jerome Powell. “Is he more stupid or just stubborn?” he tweeted. And then, classic Trump: “We need BIG rate cuts now!” But here’s the kicker—he actually floated the idea of putting himself in charge of the Fed. Yeah, that happened.
Trump vs. Powell: Round… Who’s Even Counting Anymore?
Let’s be real—this isn’t new. Trump picked Powell back in 2018, and ever since, it’s been this weird love-hate thing where the president keeps trashing his own appointee. The Fed’s supposed to be independent, right? But Trump? He treats interest rates like they’re his personal stock market remote control.
And now, right before the Fed’s big decision, he drops this bomb: “Can I appoint myself? Wouldn’t that be something?” I mean, come on. Even for him, that’s bold. The thing is, though—he’s not entirely wrong about wanting lower rates. The economy’s got some cracks. But the way he’s going about it? Not exactly subtle.
What’s the Fed Gonna Do Now?
Wall Street’s sweating bullets. Everyone expects at least a small rate cut—global growth’s slowing, trade wars are messing with everything, and let’s be honest, the markets have gotten used to cheap money. But Trump’s latest rant? That just made Powell’s job ten times harder.
Here’s the problem: when a president starts calling the Fed chair “stupid” on Twitter, it messes with people’s heads. Diane Swonk, this sharp economist at Grant Thornton, put it best: “It’s like watching someone yell at the umpire during the World Series. Even if you agree with the call, it makes the whole game feel rigged.”
How’s This All Gonna Play Out?
Option 1: Fed Cuts Rates
Markets would probably pop—traders love cheap money. But here’s the catch: it’ll look like Powell folded under pressure. And once that door opens, good luck closing it.
Option 2: Fed Stands Pat
If Powell ignores Trump? Buckle up. The president’s tweets will go nuclear, and markets might freak out. Remember, this is the guy who once talked about demoting Powell. (Though lawyers say he can’t actually do that. Probably.)
The Bigger Picture
This isn’t just about stocks. If investors start thinking the Fed takes orders from the White House? That’s the kind of thing that makes foreign money pack its bags. And once confidence goes, it’s a slippery slope.
So Where Does This Leave Us?
Look, Trump’s not wrong to want what’s best for the economy. But the way he’s going about it? It’s like trying to fix a watch with a sledgehammer. The Fed’s got a tough call to make—balance the economy’s real needs against looking like they’re caving to political noise.
One thing’s for sure: whatever happens next, it’s gonna be messy. And honestly? I wouldn’t want to be Jerome Powell right now.
Stick around—we’ll update you once the Fed makes its move. Should be… interesting.
Source: Financial Times – Global Economy
