President Trump says ‘stupid’ Chair Powell ‘probably won’t cut’ rates Wednesday
As the Federal Reserve’s rate decision neared, President Donald Trump critiqued Chair Jerome Powell, calling him “stupid.”
Speaking outside the White House Wednesday morning, Trump said he didn’t expect central bank policymakers to cut rates at the conclusion of their June meeting.
“So we have a stupid person,” Trump said of Powell. “Frankly you probably won’t cut today.”
“Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune,” Trump said.
Fed funds futures trading suggests that the Federal Reserve will likely stand pat on rates Wednesday, keeping them at the target range of 4.25% to 4.5%.
Read more from CNBC’s Jeff Cox on Trump’s comments over rate policy here.
—Darla Mercado
As the Fed’s June meeting ends, watch for policymakers’ outlook as market catalyst
The Federal Reserve’s outlook could be the big market-moving development on Wednesday.
Policymakers are widely expected to hold interest rates steady at the conclusion of their June meeting, but traders are eager to hear their latest outlook on the path forward for rates.
The Federal Open Market Committee will be issuing its Summary of Economic Projections, which includes policymakers’ forecasts on inflation, economic growth and the unemployment rate. The Fed’s closely followed “dot plot” is also part of the outlook, showing FOMC members’ projections for interest rates.
The forecast comes at a critical time for the U.S. economy, which is grappling with uncertainty around President Donald Trump’s tariff policy, mixed economic data and now a conflict between Israel and Iran that’s pushing energy prices higher.
Read more from CNBC’s Jeff Cox on what to expect from the Fed on Wednesday.
–Darla Mercado
Where consumer rates stand before the Federal Reserve’s decision
The Federal Reserve is largely expected to stay put on interest rates, maintaining them at a target range of 4.25% to 4.5% – where they’ve been since December.
Even as rates are off their highs and the Fed put through three cuts in late 2024, borrowing costs remain relatively high for consumers.
During the week of June 13, rates on 30-year fixed mortgages are at 6.89%, according to MND. That’s up from 4.29% during the week of March 11, 2022 – just before the Fed embarked on its rate-hiking campaign. Home equity loan rates are also high, sitting at 8.4% as of June 13, compared to 5.96% in March 2022, per Bankrate.
Credit card borrowers are also paying more on their balances, with rates hovering at 20.12%, per Bankrate. That’s up from 16.34% in March 2022.
Higher rates have been good news for savers, however. Yields on money market funds were at 0.44% as of June 13, compared to 0.08% in March 2022, according to Haver. Five-year certificates of deposit have seen their annual percentage yields rise to 1.71% as of June 13, up from 0.50% in March 2022, Haver found.
–Darla Mercado, Nick Wells
