Trump Criticizes Federal Reserve's Interest Rate Cut as Insufficient

President Donald Trump has expressed dissatisfaction with the Federal Reserve's recent decision to lower the benchmark interest rate by a quarter percentage point, suggesting the reduction should have been at least twice as large.

During a roundtable meeting with business leaders at the White House, Trump criticized Fed Chair Jerome Powell, referring to him as "a stiff" who approved a "rather small" cut.

The Federal Open Market Committee voted 9-3 in favor of the 0.25% rate cut, setting the target range between 3.5% and 3.75%. This marks the third consecutive rate cut this year.

The decision revealed divisions within the committee: two members preferred to maintain current rates, while one advocated for a larger reduction.

Powell indicated that the latest cut was a "close call" and suggested a pause in further reductions to assess economic developments. He also attributed the current inflation overshoot to tariffs implemented by the Trump administration, stating that these tariffs have been the primary drivers of the inflation increase.

Trump has been a vocal critic of the Federal Reserve's monetary policy, consistently urging for more aggressive rate cuts to stimulate economic growth.