President Donald Trump and Vice President JD Vance ramped up pressure on the Federal Reserve Wednesday, demanding lower interest rates despite inflation remaining slightly above target.
Vance took to X, calling the Fed’s inaction “monetary malpractice” following new data from the Bureau of Labor Statistics showing the Consumer Price Index rose just 0.1% in May.
The president has been saying this for a while, but it's even more clear: the refusal by the Fed to cut rates is monetary malpractice. https://t.co/HqUjWxwcHs
— JD Vance (@JDVance) June 11, 2025
Annual inflation stands at 2.4% overall and 2.8% excluding food and energy, both still above the Fed’s 2% target.
Trump has repeatedly urged Fed Chair Jerome Powell to slash rates by a full percentage point from the current 4.25%-4.5% range. The Fed last cut rates in December.
Despite White House pressure, markets expect the Fed to hold steady in its decision next week, with potential easing pushed to September.
J.P. Morgan strategist Elyse Ausenbaugh noted the combination of softening inflation and a slowing labor market may justify cuts but warned the Fed is likely to proceed cautiously.
