Trump Demands Powell Lower Rates and Defends His Tariffs in Light of Inflation Figures

• Trump demands Powell lower rates and defends his tariffs.
• Fed foresees possible rate cuts by the end of the year.
• US inflation remains stable in July.

US President Donald Trump intensified his criticism of Federal Reserve (Fed) Chairman Jerome Powell on Tuesday.

This, by demanding an immediate cut to interest rates and defending that his tariff policy has not caused inflation.

On his Truth Social account, Trump wrote: “Jerome ‘the Slowpoke’ Powell must lower the rate NOW. (…) The damage he has caused by always acting too late is incalculable.

Fortunately, the economy is so strong that we have gone over Powell and the complacent Board (of the Fed).”

Trump demands Powell lower rates and defends his tariffs

Donald Trump keeps the pressure on Federal Reserve Chairman Jerome Powell to lower interest rates. https://t.co/IGJNZiIuSL

— NMás (@nmas) August 12, 2025

The president’s remarks came after it was reported that US inflation in July held at 2.7% year-over-year, while the core rate—closely watched by the Fed—rose 3.1%, in line with analysts’ projections.

This latter figure could reflect the impact of the tariffs implemented by the current administration.

Trump, however, maintains that his trade measures have brought “enormous amounts of cash” into the country without generating inflationary problems.

According to the president, these policies have strengthened the U.S. economy.

Criticism over Fed renovation spending

Trump urges Powell to cut rates and claims tariffs do not cause inflation https://t.co/J4uz70tluk

— El Comercio (@elcomercio_peru) August 12, 2025

In another message, the president questioned the cost overruns of renovation works at the Federal Reserve headquarters in Washington, estimated at about $700 million.

“I am considering allowing a major lawsuit against Powell to proceed because of the horrible and extremely incompetent job he has done managing the construction of the Fed’s buildings. $3 billion for a job that should have been a $50 million renovation! Not good!” he wrote.

Republicans have used this spending to criticize Powell’s management, while the president has turned the issue into a new talking point in his campaign to push for a rate cut.

This was reported by EFE.

The Fed’s stance

The Federal Reserve currently maintains interest rates in a range between 4.25% and 4.5% since December 2024.

Powell has defended the need to act cautiously, arguing that inflation remains persistent and has not yet stabilized around the 2% target.

The agency foresees “one or two cuts” toward the end of this year and will meet again on September 16 and 17, when it could decide whether to adopt an early cut or maintain the wait-and-see strategy.

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