Trump Pressures Fed from Scotland: "Rate Cuts Will Make America Greater!"

TradingKey - On July 28 (local time), U.S. President Donald Trump, during his visit to Scotland, again called for the Federal Reserve to cut interest rates.

"I think he has to," Trump, speaking alongside British Prime Minister Keir Starmer following their meeting in Scotland, said of Federal Reserve Chair Jerome Powell on benchmark rates.

He added, "Even without a rate cut, the U.S. is doing very well, but with a rate cut, the U.S. will do even better."

Trump’s strained relationship with the Fed and Chair Powell has a long history. This year, Powell has repeatedly delayed rate cuts, citing economic uncertainty, stating, "The Fed would have cut rates already if not for Trump’s tariff policies."

This has deeply frustrated Trump, who at one point threatened to fire Powell. However, due to potential legal hurdles and risks of severe market disruption, such threats were never implemented.

Notably, the FOMC meeting scheduled for Tuesday and Wednesday (Eastern Time) is widely expected to maintain current rates, potentially further escalating tensions between the White House and the Fed.