Topline<\/p>\n
President Donald Trump on Wednesday criticized the Federal Reserve, arguing the central bank\u2019s latest reduction in interest rates could have been doubled, while calling Fed Chair Jerome Powell a \u201cstiff.\u201d <\/p>\n
Betting markets and Wall Street expected a third consecutive cut in interest rates, but now forecast a cautious approach from the Fed in 2026.<\/p>\n
Copyright 2025 The Associated Press. All rights reserved.Key Facts<\/p>\n
The Federal Open Market Committee voted 9-3 in favor of lowering interest rates by a quarter-point to between 3.5% and 3.75%, down from the 3.75% and 4% range the central bank approved during the FOMC\u2019s October meeting.<\/p>\n
Three Fed officials dissented for the first time since September 2019: Fed Governor Stephen Miran preferred to lower the range by a half-point, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred for rates to be held as is.<\/p>\n
The Fed\u2019s \u201cdot plot,\u201d which outlines the central bank\u2019s policymaking expectations, indicated just one quarter-point interest rate cut is expected in 2026 and another in 2027, when the funds rate is expected to reach a targeted rate of 3% to 3.25%.<\/p>\n
The Fed\u2019s statement was tweaked to say it would consider the \u201cextent and timing of additional adjustments\u201d to interest rates\u2014language last used by the central bank in December 2024, after which the FOMC opted not to approve reductions until September.<\/p>\n
What Did Donald Trump Say About Interest Rates?<\/p>\n
Trump, a critic of Powell who he\u2019s consistently accused of being \u201ctoo late\u201d to cutting interest rates, said the Fed\u2019s move to lower interest rates by a quarter-point could have been \u201cat least doubled.\u201d Trump, who spoke Wednesday during a roundtable meeting with CEOs, added to his criticism of Powell, calling the Fed chair \u201ca stiff\u201d and a \u201cdead head\u201d who approved a \u201crather small cut.\u201d Trump added, \u201cWe have to get a mindset that when a country is doing well, you don\u2019t want to kill the growth. That\u2019s what [the Fed is] doing. They kill the growth.\u201d<\/p>\n
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