U.S. Vice President JD Vance renewed public pressure on the Federal Reserve, saying the central bank should lower interest rates as the White House steps up its case for easier policy.
At a White House press briefing on Sept. 3, Vance said, 「We believe the Federal Reserve should cut rates,」 calling that the 「right and responsible」 response to recent inflation data. He added, 「We’re doing a lot of things to push rates down, but if we could get some help from the Federal Reserve, that would be even better.」
Vance links rate cuts to housing affordability
Vance directly tied his argument for lower rates to housing costs. He said President Donald Trump cares deeply about interest rates in part because he wants Americans to be able to afford homes, and higher rates mean higher borrowing costs.
According to CNBC, Vance made the remarks when he was asked how the Trump administration viewed volatility in the U.S. bond market.
The timing is notable. His comments came less than two weeks before the Federal Open Market Committee is scheduled to meet on Sept. 15-16 to decide on rates. CME Group FedWatch data cited in the report showed traders are nearly split down the middle on whether that meeting will bring a rate increase, leaving the near-term policy path unclear.
His comments clash with Warsh’s recent tone
Vance’s position stands in visible tension with the latest signals coming from the Fed.
Less than a week earlier, Fed Chair Warsh, who was nominated by Trump, spoke at Jackson Hole in Wyoming and said he is committed to bringing inflation back to the central bank’s 2% target. He described short-term interest rates as the 「primary tool」 for achieving the Fed’s dual mandate. Markets read those remarks as pointing to the possibility of a rate hike.
Fed officials have also shown internal disagreement. On Tuesday, Federal Reserve Governor Michael Barr said he would be prepared to support a rate increase if inflation remains elevated. On Thursday morning, Governor Waller said he was more inclined to keep rates unchanged.
Vance made a similar push in June
This was not the first time Vance publicly pressed the Fed on rates.
After the U.S. Bureau of Labor Statistics released May CPI data in June, Vance joined Trump in calling for rate cuts on X. At that time, headline CPI rose 0.1% month over month, while core CPI also increased 0.1% on the month. The annual rates were 2.4% and 2.8%, still above the Fed’s 2% target.
Vance used sharper language then, writing: 「The president has been saying this for a while, but it’s clearer now: the Federal Reserve’s refusal to cut rates is monetary malpractice.」
During the same period, Trump posted on Truth Social calling on the Fed to lower rates by a full percentage point. He said that was 「very important」 because lower rates would save substantial interest costs on U.S. debt coming due.
Questions over Fed independence remain in focus
CNBC said Vance’s latest remarks may add to concerns that the Fed’s independence is being eroded.
Trump had previously kept up pressure on Warsh’s predecessor, Jerome Powell, demanding steep rate cuts. He is also seeking to remove Federal Reserve Governor Lisa Cook.
The Fed last cut rates in December 2024. Since then, officials have kept policy unchanged while repeatedly voicing concern that tariff policy could lift prices in the future.
The source article was written by Long Yue for Wallstreetcn and republished by MarsBit.