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Trump says interest rates should be '2.5 points lower'

BY Reuters | ECONOMIC | 06/19/25 10:14 AM EDT

WASHINGTON, June 19 (Reuters) - U.S. President Donald Trump on Thursday reiterated his calls for the Federal Reserve to cut interest rates, saying the rates should be 2.5 percentage points lower.

"Jerome Powell is costing our Country Hundreds of Billions of Dollars... We should be 2.5 Points lower," he said in a Truth Social post, referring to the Federal Reserve chair.

The Federal Reserve held rates steady on Wednesday, keeping the benchmark overnight rate in the 4.25% to 4.5% range. (Reporting by Bhargav Acharya and Jasper Ward; Editing by Scott Malone)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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