Trump Again Pressures: Interest Rates Should Be Lowered by 3 Points, Powell is about to Leave

Cailian Press, July 23rd (Editor: Niu Zhanlin) – According to reports, on Tuesday local time, U.S. President Donald Trump once again targeted Federal Reserve Chairman Jerome Powell, demanding he quickly cut interest rates and calling him “utterly foolish,” stating that Powell will soon be out of a job.
During a press conference on the same day, Trump stated, “I think he’s done poorly, but in any case, he’ll be gone soon. In eight months, he’ll have to go.”
It is known that Powell’s term as chairman ends in May 2026, but he can remain as a director until 2028. The timing of eight months precisely coincides with mid-March 2026, a point Trump chose not to explain by the White House.
Trump claimed that the current high interest rates are affecting the housing market. He suggested that interest rates should be reduced by three percentage points, or more.
He said, “Our economy is very strong now, capable of overcoming all difficulties, and we are creating records. But you know? People can’t afford houses because this guy is an idiot; he kept interest rates too high for political reasons.”
The Federal Open Market Committee (FOMC) of the Federal Reserve is set to hold its policy meeting next week. The market widely expects the committee to maintain the current benchmark rate at 4.25%-4.50%, as policymakers will wait to see how tariffs impact inflation and the labor market.
Since the beginning of the year, Trump has repeatedly criticized Powell and threatened to remove his position as Fed Chairman, using this pressure to force the Fed to lower interest rates. Recently, the Trump administration has frequently mentioned the Fed’s spending $2.5 billion on renovating its office buildings and exceeding budget, further pressuring Powell.
At the same meeting, U.S. Treasury Secretary Steven Mnuchin turned his attention to the Fed’s non-monetary operations, once again calling for a large-scale internal investigation.
“The Fed’s mission has seriously strayed beyond its boundaries, with a significant portion of its budget spent on these areas,” Mnuchin openly stated, “They must return to their core mission and stop fiddling with these buildings.”
In response, the Fed stated that the renovations were necessary due to significant safety hazards and efficiency deficiencies in the buildings, highlighting that they had to be completed.