US President Donald Trump participates in a roundtable discussion with business leaders at the White House in Washington, DC, on December 10, 2025.
Jonathan Ernst | Reuters
President Donald Trump said Wednesday that the Fed’s latest decision to cut its benchmark interest rate by a quarter of a point could have “at least doubled.”
President Trump, who has long urged the central bank to cut interest rates to spur further economic growth, called Fed Chairman Jerome Powell a “big-head” for approving a “fairly small” rate cut.
Trump also said during a roundtable with CEOs at the White House that he planned to meet with former Federal Reserve Director Kevin Warsh later Wednesday.
Mr. Warsh and National Economic Council Director Kevin Hassett are two of the top candidates to replace Mr. Powell, whose term ends in May.
“We’re looking for people who are honest about interest rates,” Trump said, adding, “Our interest rates should be lower.”
Powell has been a major target of criticism from President Trump, who believes the Fed has been too slow to cut interest rates during the first year of his second term.
President Trump also lamented the tendency to raise interest rates in response to strong economic results.
“We’re going to go back to the old days,” President Trump said at the roundtable. “Just because they announce great financial results doesn’t mean they’re going to raise interest rates and cancel out interest rates.”
The president’s comments came shortly after the Fed announced its third 25 basis point interest rate cut this year.
The decision was a middle ground choice within a divided Fed. Two members did not want to change rates, while Trump administration economic official Stephen Millan supported a significant rate cut.
In a press conference later Wednesday, Chairman Powell said the rate cut was a “close call” that would give the Fed room to “wait and see how the economy goes.”
He also directly blamed Trump’s tariffs for the country’s “slightly higher” inflation levels.
“These indicators are higher than they were at the beginning of the year as manufactured goods inflation has accelerated, reflecting the impact of tariffs,” Powell said, citing increases in two major inflation indicators.
