Trump demands lower interest rates as U.S. economy 'backs up'

On July 10, 2025, President Donald Trump made a public declaration asserting that the United States economy is officially 'back', during a series of posts on Truth Social. He cited record highs in both the stock market and cryptocurrencies, notably highlighting Bitcoin's recent all-time high. In addition to this optimism, he pointed to an absence of inflation as crucial indicators of economic health, which he believes justify a call to the Federal Reserve to implement lower interest rates. Trump's statements emphasized the importance of interest rates being reflective of the current economic performance. With these comments, Trump reiterated his long-standing critique of Federal Reserve Chairman Jerome Powell, characterizing Powell's decisions as detrimental to economic growth. Trump's remarks on Thursday were not just a reflection of his confidence in the economy but also targeted Powell directly, whom he has previously termed 'Too Late Powell'. Despite Trump's calls for lower rates, the Fed has resisted such changes, citing concerns over potential inflation, which Trump believes is unfounded given the current market conditions. In his posts, Trump highlighted significant financial aspects, such as the U.S. taking in hundreds of billions of dollars in tariffs and a surge in interest from foreign investors, which he sees as a testament to the U.S. credit standing. He argued that this 'great credit' status should allow the government to reduce interest rates. Reflecting on the economic landscape, Trump pointed to the surge in Nvidia’s stock as evidence of confidence in U.S. economic outlook, specifically through advancements in artificial intelligence that could drive productivity. The potential for increased productivity without an accompanying rise in inflation has historical precedence; during the late 1990s, rapid economic growth occurred at low inflation rates due to technological advancements. Therefore, Trump believes that current conditions merit lower interest rates to stimulate growth without reigniting inflation. His assertions align with views that abundant foreign capital flowing into U.S. assets means that lower rates could be viable and politically favorable, indicating a possible shift in monetary policy if the Fed were to heed his calls.