Trump again criticizes Fed, saying stable economic data shouldn't stop rate cuts

U.S. President Donald Trump reiterated his criticism of the Federal Reserve, expressing disappointment that the central bank has not lowered interest rates. Trump argued on Wednesday that robust economic data should not deter the Fed from pursuing a more expansionary monetary policy.

While Trump has previously criticized Fed officials, he praised current Chair Jerome Powell, whom he nominated. Powell replaced Janet Yellen, whom Trump had frequently criticized for not acting quickly enough on rate cuts. Trump suggested that the Fed's board, composed of appointees from previous administrations and his own, might be acting with political motives rather than sound economic judgment.

Trump pointed to the Fed's decision-making process, stating, "I have a board, it's a political board." He questioned whether their actions were driven by a desire to "do good things" or by "political means." The Fed has not raised benchmark rates for over three years, and the FOMC lowered rates three times in the latter half of 2025 and again in the preceding year.

However, the pace of these cuts has not satisfied Trump, who believes lower rates are crucial for sustaining economic growth and managing the nation's nearly $40 trillion debt. He recalled that 25 years ago, interest rates decreased when the country announced excellent economic data, attributing this to greater national strength then. Now, he observes, better U.S. economic performance seems to have a negative impact on interest rates.

Trump also drew a comparison with Switzerland, where benchmark rates remain near zero. He noted that Switzerland faces the opposite problem of low inflation and a strong currency, unlike the U.S. He stated that Switzerland's interest rate is a "staggering" 0.5 percent, while the U.S. rate is 3.5 percent. Despite his concerns about high interest rates, Trump does not believe the U.S. bond market is in trouble.