- Trump lashes out at Powell, demanding a “BIG” rate cut immediately.
- Inflation data cooled, with PPI at just 0.1%, strengthening the case for easing.
- Fed meets Sept. 16–17, where markets expect at least a quarter-point cut.
President Donald Trump is once again turning the heat up on Federal Reserve Chair Jerome Powell, blasting him as “Too Late” and urging immediate rate cuts after fresh inflation data showed signs of easing.
Trump’s Truth Social Outburst
In a fiery post on Wednesday morning, Trump declared: “Just out: No Inflation!!! ‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” The comments landed just minutes after new data revealed the producer price index (PPI) slowed to 0.1% in August, following a hefty downward revision for July.
Powell’s Pushback
Despite Trump’s loud calls, Powell has defended the Fed’s cautious stance, pointing to uncertainty created by Trump’s own tariff policies. The Fed has argued that holding off on aggressive rate cuts is necessary to balance slowing growth with persistent inflation risks. Still, markets are already pricing in at least a 25 basis point cut at the upcoming Sept. 16–17 policy meeting.
Why It Matters Now
Trump’s attacks highlight the growing political pressure on the central bank as the economy navigates a tricky path—slowing job growth, tariff-fueled costs, and cooling inflation signals. For traders, the showdown between Trump and Powell could set the tone for markets heading into the fall, with equities, bonds, and crypto all eyeing the Fed’s next move closely.
