Federal Reserve Chair Jerome Powell indicated on Tuesday that he would not rule out the possibility of an interest rate cut as soon as the Fed’s upcoming meeting this month. His remarks come amid mounting public pressure from President Donald Trump, who has repeatedly called for significant rate reductions.
When asked about a rate cut at the July meeting, Powell responded, “I wouldn't take any meeting off the table or put any on the table. It depends on how the data evolve.”
Speaking at the European Central Bank forum in Sintra, Portugal, Powell deflected questions regarding the political criticism from Trump, emphasizing his focus on the Fed’s mandate: “I'm very focused on just doing my job.” He reiterated that the Fed remains “100% focused” on controlling inflation and achieving maximum employment.
European Central Bank President Christine Lagarde expressed full support for Powell’s approach, stating she and her colleagues would “do the exact same thing as Jay Powell.”
Since taking office, Trump has frequently criticized Powell despite the Fed’s political independence as a government agency established by Congress. In a recent social media post, Trump stated that Powell and other central bankers “should be ashamed of themselves,” calling for interest rates to drop to “1% or better” from the current range of 4.25% to 4.5%. The post included an image of a handwritten letter to Powell signed by Trump.
The Fed maintained its benchmark interest rate steady last month, continuing a cautious wait-and-see approach amid uncertainty over the effects of Trump’s tariff policies. It has been six months and four meetings since the last rate adjustment.
In March, the Fed forecasted two quarter-point rate cuts for the remainder of 2025. On Tuesday, Powell confirmed that a majority of the Federal Open Market Committee (FOMC) members favor beginning interest rate reductions this year, with four remaining meetings scheduled. The next meeting is set for July 29-30.
A majority of us feel it will be appropriate in the remaining four meetings of the year to begin reducing rates again, Powell said.
