Jerome Powell Must Lower Rates, Trump Says Ahead Of Fed Meeting

US President Donald Trump has made a case for interest rate cuts ahead of July’s Fed meeting. The US president argued that lower interest rates will trigger a boom in the housing market, but chances for a rate cut remain low.

Trump Urges Powell To Cut Interest Rates

Ahead of today’s Fed meeting, US President Donald Trump has called for interest rate cuts, hinging his latest attempt on new economic data. In a Truth Social post, Trump argued that a positive GDP report, indicating a 3% growth in Q2, adds to a laundry list of reasons for rate cuts.

According to data from the US Bureau of Economic Analysis (BEA), the latest Q2 GDP figures came in higher than the expected 2.3% estimate. Combined with falling inflation metrics, Trump urged Fed Chair Jerome Powell to lower rates, branding him “Too Late” for failing to cut rates after several Fed meetings in 2025.

Trump opined that a lower interest rate would improve activity levels in the housing market, allowing residents to buy homes and refinance existing mortgages. Recently, Senator Cynthia Lummis introduced the Mortgage Act to recognize Bitcoin in loan eligibility processes, targeted at digitizing the sector.

The latest call by the US President for interest rate cuts comes five days after a visit to the Federal Reserve. During the Fed visit, Trump pushed for rate cuts, citing the European Central Bank’s streak of interest rate cuts and low inflation in the US.

Rate Cuts Odds Fall Ahead Of Fed Meeting

Trump’s push for rate cuts comes just hours before July’s FOMC meeting, which could shape the US economic outlook for the next seven weeks. Ahead of the FOMC meeting, the CME FedWatch tool pegs the probability of the Fed slashing interest to 400 -425 bps at 3.1%.

Meanwhile, the odds of the Fed keeping interest rates steady between 425 – 450 bps are at a record high of 96% amid calls for rate cuts. Despite the low odds, a report noted that the Fed faces a rare split with two Trump-appointed Governors potentially advocating for immediate interest rate cuts. However, Treasury Secretary Scott Bessent has disclosed that he is not expecting the Federal Reserve to cut interest rates.

Previously, San Francisco Federal Reserve President Mary Daly has argued in favor of two rate cuts in 2025. Daly recommended that the Fed should keep interest rates steady before easing interest rate cuts in subsequent Fed meetings.