Trump writes to Powell: Rates must go down, and by a lot!

US President Donald Trump is attacking Fed chief Jerome Powell again for failing to cut interest rates, accusing Mr. “Too Late” and his people of having caused the United States to lose trillions of dollars in interest on debt. This has become a daily exercise for the US leader, who spares no opportunity to hurl insults at the President of the US central bank, whom he seriously considered firing.

A White House spokeswoman confirmed that Trump wrote a letter to the head of the Federal Reserve, asking him to lower interest rates, but the US leader did not stop there and poured out all his anger in a post on his social Truth.

Trump's latest post

This time Trump does not even spare the other members of the Federal Reserve Board . “Jerome 'Too Late' Powell and his entire Board – Trump writes on his social Truth profile – should be ashamed for allowing this to happen to the United States”.

“They have one of the easiest, yet most prestigious, jobs in America, and they have failed and continue to fail ,” the post continues. “If they did their job right, our country would save trillions of dollars in interest payments. The Board is just sitting there, so they are also to blame . We should be paying 1% interest, or more.”

The table with the map of world rates

This time Trump doesn't just attack Powell and other bankers, he publishes a growing list of all the rates charged by central banks around the world, with annotations, and the message: " Jerome, you are, as always, 'too late' . You cost the US a fortune and you continue to do so. You should lower rates, and by a lot! Hundreds of billions of dollars have been lost!"

The table summarizes, in descending order, the list of rates practiced by central banks around the world, starting from the 0.25% practiced in Switzerland. A “marginal” note by Trump indicates a range of rates desired between 0.25% and 1.75% practiced by Denmark, the Seychelles and Thailand. The list scrolls down and in 35th place appears the United States , with a rate of 4.5%, well above the 2% of the Eurozone, which is in ninth place, and also above the United Kingdom which is in 33rd place in the ranking.

Trump wants to oust Powell

Last week, at the NATO summit, Trump publicly announced his intention to oust the Fed Chairman , indicating that he also had two or three names to replace him . Press leaks then indicated the list of possible candidates, which also included US Treasury Secretary Scott Bessent . Evidently, ousting Powell is more difficult than the US leader has led us to believe in recent weeks, also as a guarantee of the Fed's independence . And so, perhaps, Trump is trying to exasperate the imperturbable Powell, attacking him every day on social media (and not only).

Goldman Now Sees Three Cuts in 2025

While the market had previously expected only two interest rate cuts this year, Goldman Sachs now sees the likelihood of a third cut in 2025. Citing the effects of tariffs and a weakening labor market, the U.S. investment bank now expects three consecutive 25-basis-point cuts in September, October, and December , compared to its previous forecast of a single reduction in December.