President Donald Trump intensified his pressure campaign on the Federal Reserve on Monday, sending a handwritten note to Fed Chair Jerome Powell demanding a substantial interest rate cut and blaming the central bank for high borrowing costs and wasted taxpayer funds.
"You have cost the U.S.A. a fortune - and continue to do so," Trump wrote in the note, which was displayed during a White House press briefing. "You should lower the rate - by a lot!"
The message, scrawled in black Sharpie and highlighted in yellow, included a chart comparing U.S. interest rates to those of 44 other countries. The president pointed to nations such as Denmark and the Seychelles, both with interest rates near 1.75%, and wrote, "We should be here," underlining the gap with the U.S. benchmark rate, which currently stands between 4.25% and 4.5%.
"Jerome - you are, as usual, 'Too Late,'" the letter read. White House Press Secretary Karoline Leavitt told reporters, "The American people want to borrow money cheaply and they should be able to do that."
The public release of the note marked the latest escalation in Trump's ongoing campaign to reshape the Fed's direction and leadership. The administration has floated plans to name Powell's successor before his term ends in May 2026. Treasury Secretary Scott Bessent told Bloomberg Monday that the administration may appoint a new board member in January with the intent of elevating that person to chair.
On Friday, Trump signaled his intent to nominate a compliant candidate, stating he would choose someone who "wants to cut rates."
A spokesperson for the Federal Reserve declined to comment on the president's letter. Powell, during congressional testimony last week, maintained the Fed's current stance and emphasized inflation concerns tied to Trump's own trade policies. "If you just look at the basic data and don't look at the forecast, you would say that we would've continued cutting," Powell said, adding, "All forecasters are expecting pretty soon that some significant inflation will show up from tariffs."
The central bank has held rates steady for four consecutive meetings after its last cut in December. Powell also reiterated the Fed's independence, a principle recently reaffirmed by a Supreme Court ruling shielding central bank officials from politically motivated firings.
Despite this, the administration's rhetoric has grown increasingly combative. Trump-appointed governors Christopher Waller and Michelle Bowman have expressed support for rate cuts as early as July, though that view remains in the minority on the Federal Open Market Committee.
