President Donald Trump may have his focus set on the conflict in the Middle East, but he’s still finding time to harrass Fed chairman Jerome Powell.
The U.S. and Israel’s military action in Iran has led many on Wall Street to the conclusion that any rate cuts in 2026 are on increasingly thin ice, owing to high oil prices fuelling inflation.
But Trump seems undeterred in his pressure campaign against the central bank. Writing on Truth Social yesterday evening, the president said: “Where is the Federal Reserve Chairman, Jerome “Too Late” Powell, today? He should be dropping interest rates, IMMEDIATELY, not waiting for the next meeting!”
Trump seems to be appealing to Powell for intervention as oil prices spiralled higher yesterday, once again hitting $100 a barrel. Inflation expectations are rising as a result, as consumers and businesses prepare for the rates to be passed through into their gas and energy prices.
If Powell were to cut rates, it would theoretically reduce some household and operational costs by making borrowing cheaper. In reality, for households hoping to reduce their overheads by securing cheaper mortgage rates, it takes considerably longer for a lower rate to trickle through.
