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Federal Reserve Chairman Jerome Powell is set to testify before Congress on Tuesday amid renewed pressure from President Donald Trump, who continues to urge the central bank to sharply lower interest rates.
Powell will deliver the Fed’s Semiannual Monetary Policy Report to the House Financial Services Committee at 10 a.m. Tuesday. His appearance follows last week’s decision by the Federal Open Market Committee to maintain the federal funds rate within a target range of 4.25 to 4.5 percent, a move that further angered Trump and his allies.
“’Too Late’ Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy – We should be at least two to three points lower,” Trump wrote on Truth Social.
“Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!” he added.
The president has frequently criticized Powell over his refusal to cut rates. Trump even floated the idea of appointing himself chairman of the Fed and called for a dramatic reduction in interest rates.
“Europe has had 10 cuts, we have had none,” Trump wrote on Truth Social last week. “We should be 2.5 Points lower.”
Over the weekend, Trump intensified his criticism, accusing Powell of costing the country significant money by not lowering rates.
“He could do the biggest and best job for our Country by helping to lower Interest Rates and, if he reduced them to the number they should be, 1% to 2%, that ‘numbskull’ would be saving the United States of America up to $1 Trillion Dollars per year,” Trump posted. “He’s a dumb guy, and an obvious Trump Hater, who should have never been there.”
Trump argued that with low inflation and a growing economy, the time is right for rate cuts. He pointed to increased tariff revenues and domestic manufacturing growth as signs of economic strength.
Though Trump has previously floated removing Powell, the Supreme Court in May signaled such an action would face constitutional obstacles. In an emergency ruling, the justices noted the Federal Reserve’s unique legal and historical structure, distinguishing it from other independent agencies.
