Rand Paul's claim that Jerome Powell is not lowering interest rates because Trump is generating inflation is inaccurate and unsupported by evidence.
False
Rand Paul: The reason Jerome Powell isn't lowering interest rates at the Federal Reserve is because Trump is generating inflation.
:max_bytes(150000):strip_icc()/GettyImages-2213944259-f51cff4ef05c4454bc0addb508ba44b3.jpg)
Powell says Fed rate cut is on hold even as Trump demands cuts
Source: apnews.com
At a glance
Verified July 29, 2025Key Evidence
The Federal Reserve has held or raised interest rates to address inflation concerns despite Trump's calls for cuts.
apnews.comapnews.comPowell says Fed rate cut is on hold even as Trump demands cuts
npr.orgnpr.orgTrump visits the Federal Reserve, tussles with Jerome Powell : NPR
Economists note that the Fed operates independently and bases decisions on economic indicators rather than political influence.
theguardian.comtheguardian.comTrump takes on the Fed – but he has little power over central bank, economists...
Inflation results from multiple factors beyond any single individual's policies.
The reporting
What the Evidence Shows
The Federal Reserve, led by Jerome Powell, sets interest rates based on economic data and inflation trends, not political pressure or actions by any single individual, including former President Trump. While Trump has publicly pressured Powell to lower interest rates, the Fed has maintained or raised rates to combat inflation, which has been influenced by multiple factors including pandemic recovery dynamics and global supply chain issues.
Inflation is a complex phenomenon driven by various economic forces rather than solely by Trump's policies. Moreover, the Fed's decisions are independent and aimed at stabilizing prices and employment rather than responding directly to political figures' demands.
Therefore, attributing the Fed's interest rate decisions solely to Trump's role in generating inflation misrepresents how monetary policy works.
Primary trail
Verified Sources10
Open source