Trump Pressures Fed Chair Powell Over Interest Rates

President Donald Trump has escalated his criticism of Federal Reserve Chairman Jerome Powell by sending a handwritten note urging a dramatic cut in interest rates, accusing Powell of costing the U.S. 'hundreds of billions of dollars.' Trump, who appointed Powell in 2018, objects to the Fed's current rate range of 4.25% to 4.5%, contending that lower rates would benefit American borrowers. White House Press Secretary Karoline Leavitt highlighted Trump's business credentials and called high rates the 'one problem that remains.' Powell and other Fed officials have defended their decision to maintain rates, citing caution over possible tariff-driven inflation even as U.S. inflation approaches the Fed's 2% target. The dispute underscores Trump's willingness to challenge the Fed's independence, including threats to replace Powell. Meanwhile, other global central banks have cut rates, but the U.S. has kept rates steady amid ongoing economic uncertainties.