Treasury Secretary Joins Trump in Urging Fed to Cut Rates Amid Economic Uncertainty

U.S. Treasury Secretary reiterated his stance that the Federal Reserve may be waiting too long to cut interest rates, echoing concerns that have been voiced by President Trump and some Fed officials. The Treasury Secretary's comments come as the U.S. economy faces uncertainty due to the impact of tariffs on inflation and the potential for a debt ceiling crisis.

The Treasury Secretary's remarks align with President Trump's recent criticisms of Fed Chairman Jerome Powell, who has been dubbed "Mr. Too Late" by the President. Trump has been vocal in his calls for the Fed to cut interest rates, arguing that higher rates are causing economic harm. The President has even sent a handwritten note to Powell, detailing his views on where interest rates should be set, escalating pressure on the Fed chairman.

The Treasury Secretary's comments also come as some Fed officials have expressed support for lowering rates as early as the July meeting. These officials have cited the lack of projected tariff-driven inflation as a reason for their stance. However, the Fed chair has reiterated the central bank's wait-and-see approach, stating that the Fed could afford to be patient amid the current economic conditions.

The Treasury Secretary's remarks also come as the U.S. faces a potential debt ceiling crisis. The Treasury Secretary has estimated that the U.S. will no longer be able to pay its bills by mid- to late summer, unless the debt ceiling is raised. This adds another layer of uncertainty to the economic outlook, as the Fed considers its next move on interest rates.

The Treasury Secretary's comments are significant as they come from a high-ranking official in the U.S. government. His remarks add to the growing chorus of voices calling for the Fed to cut interest rates, and they highlight the potential risks to the economy if the Fed waits too long. However, the Fed chair has remained steadfast in his approach, stating that the central bank will continue to monitor the economic data and make decisions based on the facts at hand.