President Trump presses Fed for rapid rate cuts after strong 4.3% GDP jump

According to ixbroker, President Donald Trump has renewed calls for faster interest rate cuts following stronger-than-expected US economic growth, arguing that robust performance justifies a more accommodative monetary policy stance.

The comments came after data showed the US economy expanded at an annualised pace of 4.3% in the third quarter of 2025, well above market expectations of 3.3%. Trump criticised the Federal Reserve’s current approach, stating that a strong economy should be rewarded with lower borrowing costs to support further expansion rather than restrained by tight policy.

Trump pressures Fed over rate policy

Trump has repeatedly argued that raising or maintaining high interest rates during periods of solid growth undermines economic potential. He has framed lower rates as a tool to amplify momentum in financial markets and the broader economy, putting him at odds with the Fed’s continued focus on inflation risks.

The president’s stance contrasts with policymakers’ cautious tone, as the Fed has signalled a preference for patience amid mixed inflation and labour market signals. Trump, however, has maintained that strong growth conditions warrant more aggressive easing.

Hassett backs rate cuts, cites AI productivity

Former National Economic Council director Kevin Hassett echoed Trump’s position, saying the Federal Reserve has been slow to adjust policy in response to economic strength. Speaking to CNBC, Hassett pointed to productivity gains linked to artificial intelligence as evidence that inflationary pressures remain contained despite rapid growth.

Hassett also highlighted trade policies, including tariffs, as factors contributing to narrower trade deficits and stronger domestic growth. He argued these dynamics further support the case for lower interest rates to sustain the expansion.

Fed leadership in focus ahead of 2026

The debate over interest rates comes as the Federal Reserve approaches a leadership transition. Fed Chair Jerome Powell’s term expires in May 2026, and Trump is expected to name a successor. Hassett has been mentioned as a potential candidate, given his alignment with the president’s views on monetary policy.

Despite his criticism of current policy, Hassett has stressed the importance of Federal Reserve independence and a consensus-driven approach. He has said the Federal Open Market Committee should base decisions on economic data rather than pre-emptive concerns over inflation.

Markets are closely watching developments around US monetary policy and potential leadership changes at the Fed, as expectations for the pace and direction of rate cuts continue to shape investor sentiment.