• Donald Trump demands interest rate cuts from Fed Chair Jerome Powell, calling him "dumb" and "hardheaded."
• Powell maintains the Fed's cautious stance, expecting more economic data before making any changes.
• Trump argues that cutting rates could save the U.S. economy $800 billion annually.

President Donald Trump has once again targeted Federal Reserve Chair Jerome Powell, demanding substantial interest rate cuts. In a post on Truth Social, he emphasized, "Europe has had 10 cuts, we have had ZERO. No inflation, great economy - we should be at least two to three points lower," which he believes would "save the USA 800 Billion Dollars Per Year, plus" according to Newsweek and The Hill.

During his testimony before Congress, Powell defended the Fed’s cautious approach to interest rates, stating, "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance." This statement comes amidst Trump's mounting pressure, where he referred to Powell as a "very dumb, hardheaded person." He reiterated his criticism by saying that America would "be paying for his incompetence for many years to come," according to India Times and India Times.

Trump's ongoing frustration is evident as he hinted at the potential for inflation resulting from tariff policies. While he criticized the Fed’s lack of rate cuts, Powell noted, “What we’re waiting for, to reduce rates, is to understand what will happen with the tariff inflation,” indicating that uncertainty in economic conditions requires cautious policymaking. This aligns with Powell's remarks during his hearings, as he faces scrutiny from lawmakers regarding monetary policy, inflation, and economic outlook, according to Newsweek and The Hill.

As the Federal Reserve continues to grapple with these complex issues, the next meeting scheduled for July 29-30 could be pivotal. Powell, amidst Trump's pressures, asserts that the Fed must prioritize additional data before any policy revisions. Michelle Bowman, a Federal Reserve governor, echoed this sentiment recently, suggesting that "should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting," highlighting internal considerations within the Fed, according to India Times, India Times, and Newsweek.