Trump predicts 'big cut' in interest rates this week

President Trump told reporters Sunday that he expects a "big cut" to interest rates the Federal Reserve meets this week.

"It's perfect for cutting," he said. "We're doing well and everything — energy is way down, groceries are down, everything, almost everything — is way down."

The Federal Reserve's policy committee is scheduled to meet Tuesday and Wednesday to determine the latest interest rates, amid mounting political and economic pressure.

Economists have predicted a quarter-point interest rate cut, as concerns about a softening labor market take precedence over price pressures driven by steep tariffs.

Despite the president's insistence that the economy is booming, inflation — a key factor in interest rates — hasn't settled.

Labor Department data released last week revealed that inflation rose again in August, complicating the Federal Reserve’s efforts to resolve interest rates and Trump's continued push for cuts.

The president argued that high interest rates are putting pressure on the housing market that should be corrected.

"Housing, because of the Fed, is not what it should be," he said.

The Federal Reserve kept short-term interest rates at 4.25 percent to 4.5 percent when the board met in July, but the vote saw a rare split. Trump has continued to apply pressure on the board and amp up criticism aimed at Fed Chairman Jerome Powell.

Trump has repeatedly pushed for Powell's ouster, testing the independence of the Fed.

"The Fed chairman is incompetent," Trump said Sunday. "I don't think he can help with cutting, and the thing that he's hurting most is housing for people."