Trump Pushes Fed for 300 Basis Point Rate Cut During Central Bank Visit

• During his meeting with Chair Jerome Powell, Trump visited the Federal Reserve and demanded a 300 basis point interest rate cut. 

• The president wants U.S. rates to match Switzerland’s 0.50% level and believes lower rates will boost the already strong economy. 

• Markets show a 97.4% chance that rates will remain unchanged at the July Fed meeting despite Trump’s pressure campaign.

President Donald Trump renewed his call for aggressive Federal Reserve interest rate cuts during a direct visit to the U.S. Central Bank headquarters. The president met with Fed Chair Jerome Powell while inspecting ongoing renovation projects at the facility.

Trump advocated for a substantial 300 basis point reduction in current interest rates. He argued the United States should maintain the lowest interest rates globally, citing Switzerland’s 0.50% benchmark as the target level for American monetary policy.

The president emphasized that economic conditions support immediate rate cuts. He pointed to declining inflation rates and stable employment figures as justification for monetary easing. Trump described lower rates as potential “rocket fuel” that could accelerate economic growth beyond current levels.

Fed Chair Faces Mounting Pressure Over Renovation Costs

Powell confronts criticism beyond monetary policy decisions. Representative Anna Paulina Luna recently filed criminal perjury referrals against the Fed Chair regarding renovation project expenses at the Department of Justice.

The controversy has sparked speculation about Powell’s tenure. Some reports suggested potential resignation scenarios, though these claims proved unfounded. Trump addressed firing rumors directly, stating he has no immediate plans to remove the Fed Chair.

The president acknowledged that dismissing Powell would represent a “big move” with significant implications for Federal Reserve independence. He confirmed discussions with Powell and expressed confidence that the Chair would make appropriate decisions.

Trump highlighted the European Union’s multiple interest rate reductions as precedent for American monetary policy changes. The Fed maintained current rates throughout this year despite implementing three consecutive cuts in the previous year.

Current Federal Reserve rates remain between 4.25% and 4.5%. CME FedWatch data indicates a 97.4% probability that rates will stay unchanged at the upcoming July Federal Open Market Committee meeting.

Fed President Mary Daly recently acknowledged that Trump administration tariffs created less inflationary pressure than initially projected. She agreed that the two rate cuts this year represent a reasonable forecast for monetary policy adjustments.

Market Implications for Crypto and Traditional Assets

Lower interest rates typically benefit risk assets, including cryptocurrencies. Reduced borrowing costs often drive capital toward alternative investments as traditional fixed-income returns diminish.

Trump’s aggressive rate cut proposal exceeds most market expectations. A 300 basis point reduction would bring rates near zero levels not seen since the pandemic emergency period.

The president’s direct engagement with Fed leadership represents unusual political pressure on monetary policy independence. Financial markets continue to monitor developments between the administration and Federal Reserve officials.

Powell’s response to political pressure remains crucial for traditional and digital asset markets heading into the summer Federal Reserve meetings.