U.S. Fed Cuts Rates, Warns Of Sticky Inflation | Trump Says Cut Too Small, Calls Powell A "Deadhead"

The US Federal Reserve has delivered a widely expected 25-basis-point rate cut, bringing the Federal Funds Rate down to 3.50–3.75 percent. But the move came with unusual caution- three FOMC members dissented, the highest number since 2019, and policymakers projected only one more quarter-point cut in 2026. Fed Chair Jerome Powell said the committee will now proceed carefully, watching inflation and employment trends closely. Powell noted that while AI may be slightly affecting jobs, tariffs are largely responsible for the inflation overshoot. The Fed also announced it will start buying $40 billion in Treasury bills from Friday. Minutes after the move, President Donald Trump blasted the cut as “too small,” demanding a sharper reduction. Here’s Powell’s statement followed by Trump’s critique.