Trump Calls For Immediate Fed Rate Cuts After FOMC Holds Rates Steady

President Donald Trump renewed pressure on the Federal Reserve after it held rates steady following Wednesday’s FOMC meeting in Washington. He criticized Chair Jerome Powell, demanding an immediate Fed rate cut. Trump argued that high rates now harm the economy and national security, while reiterating that inflation is no longer an issue. 

Trump Demands Immediate Fed Rate Cuts 

In a Truth Social post, the U.S. president stated that the Fed should substantially lower interest rates now. This came as he remarked that Jerome “Too Late” Powell again refused to cut interest rates, even though the Fed chair has no reason to keep interest rates so high.

Trump’s comments follow the Fed’s decision to keep interest rates steady at 3.50% to 3.75% after yesterday’s FOMC meeting. Notably, the Committee said it would assess incoming data before making further Fed rate cuts.

Trump said that delaying cuts harms the country and is costing America hundreds of billions of dollars a year in totally unnecessary interest expense. He argued that inflation no longer threatens growth and that the Fed continues to ignore improved conditions. 

Trump Defends Tariffs

The U.S. president also defended his tariffs, stating that they are bringing vast amounts of money into the country. As such, he believes the U.S. should pay the lowest interest rate of any country in the world. Trump further claimed that most countries with low interest rates can do so because the tariffs he imposes still allow them to maintain significant trade surpluses.

However, during his post-FOMC press conference, Fed chair Jerome Powell stated that most of the inflation overrun is due to the Trump tariffs, not to demand. He further remarked that the Trump tariffs’ impact on inflation is likely to peak by mid-2026, after which a cooling in inflation may signal to them to consider more Fed rate cuts.

He also said a weak labor market could warrant more Fed rate cuts, but that doesn’t appear to be the case at the moment, as they believe the labor market is stabilizing. Powell also reiterated that they have to pay more attention to inflation, which remains somewhat elevated.

Bitcoin Reacts as Fed Rate Cut Outlook Stays Uncertain

Following the decision, Bitcoin declined by about 2%. Lower rates often support risk assets, including cryptocurrencies. However, the absence of a fed rate cut limited upside momentum. Bitcoin has struggled to hold above $90,000 in the past few weeks.

Notably, 2026 has challenged crypto markets despite broader asset strength. The S&P 500 crossed 7,000 points. Gold surpassed $5,000 per ounce, setting records. Crypto prices, however, remained range-bound.

Polymarket data shows current expectations for upcoming meetings. March rate cut odds stand at 10%. April probabilities are near 25%. June expectations rose to 67%, mainly because Powell’s term ends in May.

Source: Polymarket