President Donald Trump criticized Federal Reserve Chair Jerome Powell, referring to him as a 'numbskull' and urging him to lower interest rates. Trump claimed that reducing rates by 2 percentage points could save the U.S. $600 billion annually but expressed frustration at Powell's reluctance to do so.

During a White House briefing, Trump emphasized the significant savings that could be achieved by lowering rates and criticized Powell's stance on the matter. Trump also indicated a willingness to consider rate hikes if inflation were to rise, but noted that current inflation levels do not warrant such action.

Following the release of data showing lower-than-expected producer prices in May, concerns about tariff-induced inflation have eased. This has prompted Trump and his allies to increase pressure on the Federal Reserve to implement rate cuts.

Trump's criticism of Powell is part of a broader effort by his administration to push for lower interest rates. Commerce Secretary Howard Lutnick also joined in, emphasizing the potential benefits of rate cuts and urging Powell to act swiftly.