Trump attacks Powell: interest rate cuts at the ECB forum in Sintra?

Trump attacks Powell: interest rate cuts at the ECB forum in Sintra?

On July 1, 2025, the international financial elite will meet in Sintra, Portugal, for the annual ECB forum, where, among other things, interest rate cuts will be announced by Jerome Powell, Chairman of the US Federal Reserve. Loud South German newspaper The forum is an important meeting for central bankers and academics to discuss current economic challenges.

Powell has been living under pressure in the US for some time, particularly as a result of President Donald Trump's ongoing attacks on the Federal Reserve's independence. At the conference, this means that the critical voices about the Fed, which Trump has raised loudly, are also a central topic. Powell meets well-disposed colleagues in Sintra, while at the same time he has a difficult situation in his home country.

The pressure from Washington

The US Federal Reserve has currently left interest rates unchanged at 4.3 percent, but it is known that Trump has already threatened to fire Powell if the Fed does not act and lower interest rates. Powell was able to defend his position during a press conference. He emphasizes that the Fed has responsibility for full employment and price stability, which is a challenge in the current economic situation characterized by Trump's tariff policies. Despite the pressure, Powell rejects interest rate cuts and wants to wait for economic developments before taking far-reaching measures.

Consumer sentiment in the US is currently poor, further adding to the uncertainty. Powell faces the challenge of finding a balance between maintaining the Fed's independence and pressure from political leadership to make operational decisions that may be popular but not necessarily make economic sense.

A look into the future

The ECB forum in Sintra offers Powell the opportunity to exchange his views and economic analysis with other leading central bankers. Experts expect discussions about interest rate cuts and central bank challenges related to geopolitical tensions and trade conflicts to set the tone for future monetary policy.

Overall, it remains to be seen how the situation will develop for Powell and whether the Federal Reserve will actually cut interest rates in the coming months given the political pressure and the uncertain economic situation.