Trump Pushes for Significant Rate Cuts, Challenges Fed's Stance

In a renewed call for economic stimulus, President Donald Trump on Friday urged the U.S. Federal Reserve to slash interest rates by a full percentage point, arguing that Fed Chair Jerome Powell has been sluggish in reducing borrowing costs.

Trump pointed out that European central banks have implemented several rate cuts, contrasting this with the Fed's more cautious approach. Although the Federal Reserve cut rates by half a percentage point last September in response to slowing inflation and job market concerns, Trump's persistent criticism highlights dissatisfaction with the pace of monetary easing.

Despite Trump's warnings about potential mistakes in maintaining current rates, Powell has reiterated that monetary policy decisions hinge on economic indicators, not political influences. As financial markets anticipate further rate cuts, the Fed remains vigilant on the potential impacts of Trump's tariff and economic strategies.

(With inputs from agencies.)