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Trump Says US Fed Should 'Substantially Lower' Interest Rates

Trump demands the Federal Reserve cut rates, linking tariffs to economic strength and claiming high rates cost the U.S. hundreds of billions annually, despite Fed's inflation concerns.

  • On Thursday, President Donald Trump posted an early-morning rant on Truth Social attacking Federal Reserve Chair Jerome Powell after the Fed held rates steady on Wednesday.
  • President Trump argued tariffs bring vast revenues and claimed high rates cost the U.S. hundreds of billions, demanding the Fed substantially lower interest rates, NOW.
  • The Fed's Federal Open Market Committee voted 10-2 to hold rates after three months of cuts, with only Christopher Waller and Stephen Miran favoring further reductions while noting solid economic expansion.
  • The Fed held rates steady on Wednesday despite Trump's pressure and claims that a probe tied to Trump ally Jeanine Pirro is part of the campaign.
  • Given Trump's long-running critique of the Fed, Powell said rates would remain steady to finish reducing inflation to 2 percent while noting inflation remains elevated and the U.S. job market shows signs of stabilization in recent months.
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Politico broke the news in on Wednesday, January 28, 2026.
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