Trump Targets Powell on Rate Cuts During Asia Trip

Advanced | October 31, 2025

✨ Read the article aloud on your own or repeat each paragraph after your tutor.

Trump Targets Powell on Rate Cuts at APEC CEO Remarks

Speaking on October 29, 2025 in Gyeongju, South Korea, President Donald Trump again criticized Fed Chair Jerome Powell for moving too slowly on cutting interest rates, even nicknaming him “Jerome ‘Too Late’ Powell.” Trump argued that hesitancy at the Fed is dampening business confidence and predicted 4% GDP growth in Q1 2026 if rates fall faster. The Trump targets Powell on rate cuts debate is quickly becoming one of the defining storylines of the APEC week. (Reuters)

Fed Cuts — But Signals Caution

Hours after those remarks, the Federal Reserve cut rates by 0.25%, lowering the federal funds target to 3.75%–4.00%, while Chair Jerome Powell said another cut in December is “not a foregone conclusion.” Markets digested mixed signals: easier policy now, but less certainty ahead. The ongoing Trump targets Powell on rate cuts narrative highlights a deepening divide between political and monetary priorities. (Reuters; Reuters; Washington Post)

Why Trump Targets Powell on Rate Cuts

The Trump targets Powell on rate cuts narrative has been building for months. Trump says quicker easing would stimulate hiring and investment; Powell maintains the Fed must balance cooling inflation with a softening labor market and limited official data during the government shutdown. Analysts noted Powell’s line that December easing is “far from” assured, which tempered risk appetite. (Reuters)

Market Reactions: Trump Targets Powell on Rate Cuts

Asset prices whipsawed: gold pared gains after the Fed’s move and Powell’s comments, while some Asian equities slipped as hopes for a rapid cutting cycle faded. For global firms, the signal is clear: financing conditions may ease, but not on a straight line. (Reuters; Reuters)

Bigger Picture: Trade, Tariffs, and Central-Bank Independence

Amid the APEC‑week diplomacy, Trump also touted trade progress and investment pledges, even as critics say political pressure on the Fed risks undermining central‑bank independence. Powell previously pushed back at political jabs as “cheap shots,” reiterating that policy is data‑driven. (Reuters live blog; The Guardian)

Vocabulary

Benchmark rate (noun) – the key interest rate set by a central bank.
Example: “The Fed’s benchmark rate fell to 3.75%–4.00%.”
Easing cycle (noun) – a period when a central bank reduces rates.
Example: “Markets are debating how long the easing cycle will last.”
Guidance (noun) – forward‑looking policy signals from officials.
Example: “Powell’s guidance made a December cut uncertain.”
Whipsaw (verb) – to cause sharp, rapid price moves up and down.
Example: “Powell’s remarks whipsawed bond yields.”
Risk appetite (noun) – investor willingness to take risk.
Example: “Risk appetite cooled after Powell’s comments.”
Data‑dependent (adjective) – based on incoming economic data.
Example: “Powell stressed a data‑dependent approach.”
Forward guidance (noun) – official hints about future policy.
Example: “Forward guidance suggested caution.”
Transmission (noun) – how policy changes affect the economy.
Example: “Higher rates slow growth via the credit transmission.”
Independence (noun) – freedom from political influence.
Example: “Central‑bank independence supports credibility.”
Credibility (noun) – trust that an institution will act as promised.
Example: “Mixed signals can test a bank’s credibility.”

Discussion Questions (About the Article)

What arguments does Trump make as he targets Powell on rate cuts?
Why did the Fed cut rates but avoid promising a December move?
How did markets react to Powell’s comments and the rate decision?
What risks do political attacks pose for central‑bank independence?
Which indicators would you watch to anticipate the Fed’s next step?

Discussion Questions (About the Topic)

Should elected leaders publicly pressure central banks on rate policy? Why or why not?
How do rate‑cut expectations influence business investment decisions?
What’s the trade‑off between fighting inflation and supporting employment?
How might tariffs complicate the Fed’s inflation outlook?
How can companies hedge against interest‑rate uncertainty?

Related Idiom

“Read the tea leaves” – to interpret signs to predict what will happen.
Example: “Investors tried to read the tea leaves after Powell said December cuts aren’t assured.”

📢 Want more tips like this? 👉 Sign up for the All About English Mastery Newsletter! Click here to join us!

Want to finally Master English but don’t have the time? Mastering English for Busy Professionals is the course for you! Check it out now!

Follow our YouTube Channel @All_About_English for more great insights and tips.

This article was inspired by: Reuters (link; link; link; link), Washington Post (link), The Guardian (link)