Trump says US interest rates should be at least two to three points lower

US President Donald Trump said on Tuesday that interest rates in the country should be lowered by at least two to three percentage points, ahead of Federal Reserve Chair Jerome Powell's testimony before Congress.

"We should be at least two to three points lower...if things later change to the negative, increase the Rate," Trump said in a Truth Social post.

Powell "will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate," Trump added.

Powell is set to testify in Congress on Tuesday and Wednesday, following a week of pointed remarks from Trump demanding rate cuts and raising concerns on Wall Street over the future direction of the Fed when Powell's term ends next May.

Last week, the Fed held rates steady in the 4.25-4.50 percent range and penciled in two cuts by end of 2025. However, Powell said he expected "meaningful" inflation ahead as consumers pay more for goods due to the Trump administration's planned import tariffs.

Trump's comments on interest rates come only hours after he announced a ceasefire between Israel and Iran.

Reuters