President Donald Trump may ultimately get his wish for lower interest rates, but it isn’t likely to be the result of his intensifying criticism of Federal Reserve Chairman Jerome Powell.

President Trump is pushing for 1% interest rates despite a healthy economy with 4.1% unemployment. The ultra-low rates could devastate savings accounts while creating unpredictable effects on mortgages and investment markets.

Senator Elizabeth Warren (D-MA) warned that President Donald Trump “will bring down the U.S. financial markets” if he ousts Federal Reserve Chair Jerome Powell — whom Trump appointed to the post. Trump has habitually attacked Powell and constantly pressured him to lower interest rates.

Trump has been highly critical of Jerome Powell this year, pressuring him to cut rates. The Fed Chair has said he's awaiting further clarity on inflation.

WASHINGTON (TNND) — President Donald Trump is once again putting public pressure on Federal Reserve Chair Jerome Powell, calling for interest rate cuts amid signs of a cooling labor market. But while rate cuts have been projected for months, the Fed hasn’t moved since December of 2024, and Powell doesn’t seem ready to cave just yet.

A Fed policy rate that low is not typically a sign that the United States is the "hottest" country in the world for investment, as Trump has said. It is usually a crisis response to an economy in serious trouble.

The right to freedom of speech allows Trump to make demands of the Fed to his heart's content. But legally, he cannot compel the central bank to lower its benchmark interest rate. The Fed has the right to act independently, and its aim is to promote a healthy and stable economy by keeping inflation in check.

Donald Trump's call for the Federal Reserve to slash interest rates to 1% to ease government borrowing costs faces strong opposition. Economists warn this drastic cut risks inflaming inflation expectations,