“Europe has had 10 cuts, we have had none,” Trump wrote. “We should be 2.5 Points lower, and save $BILLIONS on all of Biden’s Short Term Debt. We have LOW inflation! TOO LATE’s an American Disgrace!”
Yesterday, Powell cited the risk of an inflation uptick because of Trump’s ongoing trade war as the main reason for the Fed’s decision not to cut yet, signaling that the central bank needs more time to assess how global tariffs will weigh against the national economic outlook.
The June 18 decision holds the funds rate at its current level of 4.25% to 4.50%, with the Fed’s so-called “dot plot” – an indicator of decisionmakers’ expectations for the economy – suggesting two cuts could be on the way before the end of the year.
Lawrence Yun, chief economist at National Association of Realtors (NAR), believes the Federal Reserve is too focused on tariffs and not enough on other disinflationary factors. He urges the Fed to widen its view for earlier rate cuts. https://t.co/IcIyoRhjqA
— Mortgage Professional America Magazine (@MPAMagazineUS) June 17, 2025
But the Fed chair has faced the ire of Trump officials in recent weeks – including Vice President JD Vance, who last week accused the central bank of “monetary malpractice” for not lowering rates.
Yesterday, Federal Housing Finance Agency (FHFA) director Bill Pulte, who oversees mortgage giants Fannie Mae and Freddie Mac, called on Powell to step aside.