JD Vance supports Trump's demand for drastic Fed interest rate cuts

In the United States, on June 12, 2025, Vice President JD Vance reinforced President Donald Trump's long-standing request for the Federal Reserve to lower interest rates significantly. This statement was made following the release of a Bureau of Labor Statistics report indicating that May's inflation data was less severe than many economists had expected, with a 0.1% increase over the previous month and a 2.4% rise year-over-year. Trump's advocacy for a full point reduction in interest rates echoed Vance's assertions, framing the Fed's hesitance as 'monetary malpractice.' The comments from both Trump and Vance come amid recent economic data that suggests inflation rates may be cooling but still pose significant threats to economic stability. Throughout May, core prices, which exclude food and energy liabilities, experienced a 2.8% annual increase. Economists had anticipated higher inflation figures, further fueling the debate over monetary policy direction and the Fed's decision-making process. Trump has previously criticized Federal Reserve Chairman Jerome Powell for not taking these inflation threats more seriously and for not implementing rate cuts comparable to those seen in Europe. Job reports also emerged alongside inflation data, highlighting that the U.S. economy saw the addition of 139,000 jobs in May, above economists' expectations of 130,000. However, this figure was still a slight decline compared to the revised increase of 147,000 jobs added in April. The juxtaposition of these economic indicators raises questions about the Federal Reserve's current stance on monetary policy, particularly as the country grapples with varying inflation rates and employment statistics. Ultimately, both Trump and Vance's calls for the Federal Reserve to take more aggressive action highlight an ongoing tension between inflation concerns and economic growth. Their remarks stress the urgency for a monetary policy shift to bolster the economy as they express dissatisfaction with the prevailing rate decisions by policymakers. As the Federal Reserve continues to evaluate these dynamics, the outcome of their deliberations will significantly impact the overall economic climate in the U.S.