'Much bigger than he had in mind': Donald Trump pressures Fed Chair Jerome Powell for rate cut, warns house prices will soar

US President Donald Trump renewed his call for a significant interest rate cut Monday, intensifying pressure on the Federal Reserve just a day before its two-day policy meeting. Posting on his Truth Social account, Trump said: “Too Late” MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!! President DJT" The Fed is widely expected to lower the benchmark lending rate by 25 basis points at the conclusion of its meeting on Wednesday, AFP reported.

Analysts are closely watching Fed Chair Jerome Powell’s comments following the gathering for signals on the US central bank’s policy trajectory.A rate cut could provide a boost to the US economy at a time when the labour market shows signs of softening, raising concerns about a potential slowdown. This would mark the first reduction in interest rates in 2025, following a period of stability since the last cut in December.Despite inflation remaining above the Fed’s long-term two-percent target, the effects of recent US tariffs on price growth have been limited. This has given policymakers room to focus on supporting employment while balancing price stability.The upcoming meeting also coincides with political developments, as Stephen Miran, chair of the White House Council of Economic Advisers, may be confirmed as a Fed governor just hours before the session begins. The US Senate is set to vote on advancing his nomination Monday.Trump’s public push adds to mounting political pressure on the Fed, highlighting the delicate balance the central bank must maintain between economic growth, inflation, and financial stability.