On the 11th (local time), U.S. President Donald Trump proposed a significant reduction in the federal funds rate to the Central Bank, following the announcement of a stable consumer price inflation rate.
In a post on social media service Truth Social, Trump said, "The CPI just came out. Excellent number," and added, "The Fed needs to cut the rate by 1 percentage point."
If the Fed lowers the federal funds rate by 1 percentage point, the U.S. will pay much lower interest on maturing government bonds, which is extremely important, Trump noted. A 1 percentage point cut in the federal funds rate at once is referred to as an "ultra cut" and is a very rare situation.
Just as the Fed is expected to hold the rate steady during the Federal Open Market Committee (FOMC) meeting scheduled for June 17-18, Trump is calling for a significant reduction.
Since the Trump administration's second term began, the Fed, led by Chair Jerome Powell, has held rates steady during three FOMC meetings, and Trump is expressing dissatisfaction and pressuring for a reduction.
The U.S. Department of Labor explained that the U.S. consumer price index (CPI) rose by 2.4% in May compared to the same month last year. This aligns with the expert forecast compiled by Dow Jones, leading to the assessment that the tariffs significantly introduced by Trump have yet to have a large impact on consumer prices.