Trump: "Nvidia Up 47% After Tariffs"
"No Inflation... Fed Should Cut Rates Quickly"
White House Probes Fed Headquarters Renovation Costs
President Donald Trump of the United States has reiterated his demand for swift monetary easing, claiming that his tariff policy has driven the strength of the U.S. economy and pressuring Jerome Powell, Chair of the Federal Reserve, who has refused his calls for interest rate cuts. On the same day, the White House sent an official letter criticizing Chair Powell for what it described as lax management, citing the budget for remodeling the Fed’s headquarters. Critics argue that the Trump administration’s pressure on Chair Powell, who has maintained a cautious stance on rate cuts due to concerns over tariff-induced inflation, has gone too far.
On July 10 (local time), President Trump posted on his own social networking service, Truth Social, stating, “Since Trump’s tariffs, Nvidia’s (stock price) has risen 47%,” and added, “Tech stocks, industrial stocks, and the Nasdaq index have all hit record highs, and cryptocurrencies have soared through the roof.”
He asserted, “The United States is collecting hundreds of billions of dollars in tariff revenues. America is back now,” and insisted, “The Fed should reflect this strength and cut interest rates swiftly.” He also declared, “There is no inflation,” demanding that the Fed resume monetary easing, despite the Fed’s caution over rate cuts due to inflation concerns.
President Trump has argued for the need to lower interest rates since his candidacy in last year’s presidential election. However, Chair Powell has maintained a wait-and-see approach, citing concerns over price increases caused by tariffs. In response, since taking office earlier this year, President Trump has escalated his attacks on Chair Powell, calling him “the man who is always late” and “an idiot,” and openly demanding rate cuts. The previous day, he also argued on social media that the Fed should lower rates by 3 percentage points.
Meanwhile, the White House has intensified its offensive by directly targeting Chair Powell, raising issues with the Fed’s building management and financial operations.
Russell Vought, Director of the White House Office of Management and Budget, posted on the social media platform X (formerly Twitter), stating, “The Fed has spent $2.5 billion on renovating its headquarters, which is about $700 million more than the initial (estimated) cost,” and criticized, “Chair Powell is seriously mismanaging the Fed.” He further pointed out, “The Fed has continued to run deficits since recording its first deficit in fiscal year 2023,” and disclosed on X the official letter sent to Chair Powell seeking clarification on the renovation costs.
Director Vought also made a pointed comparison to the Palace of Versailles in France, often cited as a symbol of vanity and extravagance, remarking, “Even the Palace of Versailles would have cost $3 billion to build in today’s dollars.”
Amid the Trump administration’s overt pressure, the Fed is scheduled to hold a regular Federal Open Market Committee (FOMC) meeting on July 29-30 to discuss whether to cut the current benchmark interest rate of 4.25-4.5%. As concerns over price increases due to tariff policies grow, divisions within the Fed have emerged regarding the timing of rate cuts. According to the minutes of the June FOMC meeting released the previous day, out of 19 Fed members, 10 expect at least two rate cuts this year, 2 expect one cut, and the remaining 7 foresee rates being held steady throughout the year, indicating a divergence of views.
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