Trump Urges ‘Jerk’ Powell to Cut Interest Rates Following Recent Inflation Figures
FOX Business’ Stuart Varney weighs the market and political fallout from the investigation targeting Fed Chair Jerome Powell.
On Tuesday, President Donald Trump highlighted the release of new inflation data for December, which indicated that price growth has stabilized. He argued that this trend supports his calls for the Federal Reserve to lower interest rates.
The Bureau of Labor Statistics reported that the consumer price index (CPI) for December showed a 2.7% increase in headline inflation compared to the previous year. Core CPI, which excludes the often volatile food and energy prices, registered a slightly lower increase of 2.6%. These figures met economists’ expectations, although core inflation was marginally below the anticipated 2.7%.
Despite these inflation figures remaining above the Fed’s long-term target of 2%, Trump asserted that the current inflation rate is low enough to warrant a reduction in interest rates. He reiterated his demand for Fed Chair Jerome Powell to implement rate cuts.
“We have very low inflation. That would give ‘too late Powell’ the chance to give us a nice beautiful big rate cut,” Trump stated to reporters before heading to an economic event in Detroit.
INFLATION HELD STEADY IN DECEMBER, REMAINING WELL ABOVE THE FED’S 2% TARGET
President Donald Trump called Federal Reserve Chair Jerome Powell a “jerk” and urged the central bank to lower interest rates. (Reuters/Kent Nishimura)
During his speech in Detroit, Trump noted that mortgage rates are declining, attributing this trend to factors outside the Fed’s influence. “If I had the help of the Fed, it would be easier, but that jerk will be gone soon,” he remarked about Powell. He further stated, “when the market goes up, they should lower rates.”
Earlier that day, Trump took to Truth Social to express his views: “Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just continue to be, ‘TOO LATE!'”
GLOBAL CENTRAL BANK LEADERS BACK FED CHAIR POWELL AMID FEDERAL INVESTIGATION
Trump’s push for interest rate cuts and his ongoing criticism of Powell, who has been Fed chair since 2018 after being nominated by Trump himself, coincides with a criminal investigation by the Department of Justice into whether Powell misled Congress regarding the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell explained. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.”
FORMER FED CHAIRS, TREASURY SECRETARIES DEFEND JEROME POWELL AMID TRUMP DOJ’S CRIMINAL PROBE
Federal Reserve Chair Jerome Powell said the DOJ’s investigation is a pretext for pressuring the Fed to lower interest rates. (Amanda Andrade-Rhoades/Reuters)
Inflation has consistently remained above the Fed’s 2% target for nearly five years, with the last monthly CPI reading below that threshold occurring in February 2021. Price growth peaked at 9.1% in June 2022 but has gradually trended closer to the target in recent years. In 2025, inflation dipped to a low of 2.3% in April—the lowest level in four years—before rebounding to 3% by September as businesses passed on higher costs from the president’s tariffs to consumers.
The latest CPI inflation report indicates that inflation remains significantly above the Fed’s 2% target, and the market does not anticipate policymakers will heed the president’s calls for rate cuts in their upcoming meeting.
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The CME FedWatch tool currently shows a 97.2% probability that the Fed will maintain rates within the current target range of 3.5% to 3.75%. This figure has risen from 95.6% the previous day and 82.3% last week.
FOX Business’ Stuart Varney weighs the market and political fallout from the investigation targeting Fed Chair Jerome Powell.
On Tuesday, President Donald Trump highlighted the release of new inflation data for December, which indicated that price growth has stabilized. He argued that this trend supports his calls for the Federal Reserve to lower interest rates.
The Bureau of Labor Statistics reported that the consumer price index (CPI) for December showed a 2.7% increase in headline inflation compared to the previous year. Core CPI, which excludes the often volatile food and energy prices, registered a slightly lower increase of 2.6%. These figures met economists’ expectations, although core inflation was marginally below the anticipated 2.7%.
Despite these inflation figures remaining above the Fed’s long-term target of 2%, Trump asserted that the current inflation rate is low enough to warrant a reduction in interest rates. He reiterated his demand for Fed Chair Jerome Powell to implement rate cuts.
“We have very low inflation. That would give ‘too late Powell’ the chance to give us a nice beautiful big rate cut,” Trump stated to reporters before heading to an economic event in Detroit.
INFLATION HELD STEADY IN DECEMBER, REMAINING WELL ABOVE THE FED’S 2% TARGET
President Donald Trump called Federal Reserve Chair Jerome Powell a “jerk” and urged the central bank to lower interest rates. (Reuters/Kent Nishimura)
During his speech in Detroit, Trump noted that mortgage rates are declining, attributing this trend to factors outside the Fed’s influence. “If I had the help of the Fed, it would be easier, but that jerk will be gone soon,” he remarked about Powell. He further stated, “when the market goes up, they should lower rates.”
Earlier that day, Trump took to Truth Social to express his views: “Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just continue to be, ‘TOO LATE!'”
GLOBAL CENTRAL BANK LEADERS BACK FED CHAIR POWELL AMID FEDERAL INVESTIGATION
Trump’s push for interest rate cuts and his ongoing criticism of Powell, who has been Fed chair since 2018 after being nominated by Trump himself, coincides with a criminal investigation by the Department of Justice into whether Powell misled Congress regarding the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell explained. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.”
FORMER FED CHAIRS, TREASURY SECRETARIES DEFEND JEROME POWELL AMID TRUMP DOJ’S CRIMINAL PROBE
Federal Reserve Chair Jerome Powell said the DOJ’s investigation is a pretext for pressuring the Fed to lower interest rates. (Amanda Andrade-Rhoades/Reuters)
Inflation has consistently remained above the Fed’s 2% target for nearly five years, with the last monthly CPI reading below that threshold occurring in February 2021. Price growth peaked at 9.1% in June 2022 but has gradually trended closer to the target in recent years. In 2025, inflation dipped to a low of 2.3% in April—the lowest level in four years—before rebounding to 3% by September as businesses passed on higher costs from the president’s tariffs to consumers.
The latest CPI inflation report indicates that inflation remains significantly above the Fed’s 2% target, and the market does not anticipate policymakers will heed the president’s calls for rate cuts in their upcoming meeting.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The CME FedWatch tool currently shows a 97.2% probability that the Fed will maintain rates within the current target range of 3.5% to 3.75%. This figure has risen from 95.6% the previous day and 82.3% last week.
