Trump Increases Pressure on Fed Over Rate Cuts

President Donald Trump has escalated his campaign to pressure Federal Reserve Chair Jerome Powell to lower interest rates, criticizing Powell's leadership and advocating for rates as low as 1% due to diminished inflation and a strong economy. The administration, including press secretary Karoline Leavitt and Treasury Secretary Scott Bessent, has promoted international comparisons and explored options for appointing a successor when a board seat opens in January. Trump blames the Fed's reluctance to cut rates for costing the U.S. 'hundreds of billions.' Powell insists on the Fed’s independence, warning against politically driven rate changes, especially given economic uncertainties stemming from Trump's tariffs. Legal and institutional safeguards have so far prevented Powell's early removal, but the White House continues to examine ways to influence Fed policy. The dispute highlights the ongoing tension between the Fed's mandate and the administration's push for accommodative monetary policy.