U.S. News
Trump May Get His Way as Fed Eyes Rate Reduction
By Jake Beardslee · June 24, 2025
President Donald Trump’s push for lower interest rates appears to be gaining momentum. On Monday, Federal Reserve Governor Michelle Bowman became the second high-level official in less than a week to support cutting rates at the Fed’s next policy meeting.
Speaking in Prague, Bowman said, according to Fortune, “It is likely that the impact of tariffs on inflation may take longer, be more delayed, and have a smaller effect than initially expected.” She added, “Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting.” The next Federal Open Market Committee (FOMC) meeting is scheduled for July 29 and 30.
Trump has repeatedly criticized Fed Chair Jerome Powell for holding interest rates steady, calling him “the worst” and “a real dummy.” He even joked to reporters, “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”
The Fed last cut rates in December 2024. Since then, Trump’s broad tariffs introduced in April caused major market turbulence. Markets stabilized after Trump pulled back some threats, but uncertainty remains about whether a trade deal with China will materialize.
Christopher Waller, another Fed official appointed by Trump, told CNBC on Friday that the central bank should consider cutting rates in July. “We can actually bring these rates down,” Waller said. “I’ve been saying this since about November of [2023]. So I think we’re in that position.”
Despite calls for rate cuts, the FOMC said last week that “economic activity has continued to expand at a solid pace” and that “labor market conditions remain solid.” Inflation, however, remains “somewhat elevated.”
Powell defended the Fed’s stance at a press conference, stating, “What everyone on the FOMC wants is a good solid American economy with a strong labor market and price stability.”
The Fed will decide whether to adjust rates at its meeting later this month.