The Federal Reserve voted on May 7 to leave interest rates unchanged for the third straight meeting.
President Donald Trump says the Federal Reserve cutting interest rates would be “jet fuel” for the U.S. economy.
Throughout May 8, Trump took aim at Fed Chair Jerome Powell on social media and at a White House event announcing a new U.S.–UK trade agreement.
Speaking to reporters at the Oval Office, Trump stated that central banks worldwide are cutting interest rates, except for the Federal Reserve. If Powell lowered interest rates like the United Kingdom and other countries, it would be “like jet fuel” for the U.S. economy, Trump said.
“But he doesn’t want to do it,” the president said. “I think he doesn’t want to do it. Probably he’s not, he’s not in love with me. I think that’s, it’s sort of a crazy reason, but that’s the way life is.”
The Federal Reserve voted on May 7 to leave interest rates unchanged for the third straight meeting.
Investors in the futures market don’t expect a rate cut until July, based on data compiled by CME FedWatch.
Trump’s remarks came shortly after he took to social media and derided Powell for not cutting interest rates.
Several central banks have been lowering interest rates to cushion the potential economic blows from U.S. tariffs. The latest institution was the Bank of England.
The nine-member Monetary Policy Committee voted on May 8 to reduce its main interest rate by 25 basis points amid possible tariff-driven economic disruptions and easing inflationary pressures.
“The past few weeks have shown how unpredictable the global economy can be,” said Bank of England Gov. Andrew Bailey. “That’s why we need to stick to a gradual and careful approach to further rate cuts.”
Federal Reserve officials agreed at the end of their two-day May policy meeting to keep the benchmark federal funds rate—a monetary tool to influence economic activity—in a range of 4.25 percent to 4.5 percent.
Powell, talking to the media at the post-meeting press conference, reiterated his stance that the monetary authorities do not need to be in a hurry to adjust policy.
By Andrew Moran
