Trump Urges Federal Reserve Chair to Cut Interest Rates Immediately

U.S. President Donald Trump called on Federal Reserve Chair Jerome Powell to lower interest rates “immediately,” urging the central bank not to wait for its upcoming monetary policy meeting scheduled for next week.

In a post published Thursday on the Truth Social platform, Trump criticized Powell’s approach, writing: “Where is Federal Reserve Chairman Jerome ‘Too Late’ Powell today? He should have cut interest rates immediately, not waited for the next meeting.”

The remarks come days ahead of the Federal Reserve’s policy meeting set for Wednesday, as financial markets reassess expectations for U.S. monetary policy amid rising global energy prices.

Trump’s comments arrive at a time when market expectations for interest rate cuts have weakened significantly. The surge in oil prices linked to the ongoing conflict involving Iran has increased inflation concerns in the United States, complicating the Federal Reserve’s policy outlook.

Interest-rate swap contracts tied to Federal Reserve meeting dates now indicate traders expect cumulative rate cuts totaling only 20 basis points by the end of the year. Before the escalation of the Iran conflict, markets had anticipated at least 50 basis points of easing, equivalent to two quarter-point reductions.

Meanwhile, yields on two-year U.S. Treasury bonds, which are highly sensitive to Federal Reserve policy expectations, rose by about 10 basis points to 3.75%, their highest level since August.

Investors have demanded higher returns following the U.S. military action against Iran on February 28, reflecting concerns that elevated oil prices could reignite inflation pressures and reduce the likelihood of rate cuts even if economic growth slows.

Energy markets remain a central factor shaping monetary expectations. Continued disruption in the strategically vital Strait of Hormuz, through which roughly one-fifth of globally seaborne oil supplies pass, has pushed crude prices above $100 per barrel.

Economists warn that sustained high energy costs could feed into broader inflation, presenting a major challenge for policymakers balancing economic growth risks against price stability objectives.

The Federal Reserve has yet to respond publicly to Trump’s remarks, while markets await signals from policymakers on how geopolitical developments and inflation trends will influence upcoming decisions.