Trump Escalates Fed Criticism, Demands Aggressive Rate Cuts Amid Inflation Data

President TRUMP launched a blistering attack on Federal Reserve Chair Jerome Powell, labeling him a ''numbskull'' for resisting calls to slash interest rates by 2 percentage points. The outburst came during a White House bill signing ceremony, where Trump claimed such a cut could save the US $600 billion annually. ''We''re going to spend $600 billion a year because of one numbskull,'' Trump fumed, criticizing Powell''s reluctance to act despite softening producer price data.

The rhetoric intensified as Commerce Secretary Howard Lutnick joined the fray on Fox News, accusing Powell of failing to ''do his job.'' This coordinated pressure campaign emerges as May''s subdued PPI figures eased inflation concerns, creating tension between the administration''s growth agenda and the Fed''s independence. Market participants now watch for potential spillover effects across risk assets, including cryptocurrencies that often benefit from looser monetary policy.