Jim Chalmers and Donald Trump take very different approaches to Reserve Bank interest rate cut disappointments | Samantha Maiden

The US President had a characteristically colourful response to the US Federal Reserve’s interest rates call. Our Treasurer’s was a little different, writes Samantha Maiden.

Armed with a black Sharpie texta, a cardboard poster of global interest rates and a messiah complex, US President Donald Trump recently offered his views on US interest rates.

He’s previously threatened to fire the Federal Reserve chair, Jerome Powell, but has recently adopted his preferred response when he’s really steaming: a handwritten note.

“You have cost the USA a fortune and continue to do so. You should lower the rate – by a lot!” Trump wrote to Jerome Powell, whom he calls ‘Too Late’ in just one of his various nicknames.

On one level, it’s a ‘Look, over here!’ moment in the midst of a trade war and the stock market tanking in April, when the President first announced the highest of his tariffs.

Trump’s unprecedented personal attacks represent an abrupt departure from the traditional relationship with the Federal Reserve.

As is the case in Australia, with the Reserve Bank, the Fed is a nonpartisan, independent central bank within the federal government.

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)

Constitutionally the President can’t fire Jerome Powell, who has indicated he would not step down if Trump asks and has said the Fed will not lower interest rates prematurely, at risk of raising inflation.

Jerome Powell has fired back, noting that the Fed paused interest rate cuts “when we saw the size of the tariffs”.

In other words: it’s Trump’s fault, too.

“Essentially all inflation forecasts for the United States went up materially as a consequence of tariffs,” Powell said. “We didn’t overreact, in fact we didn’t react at all.”

President Trump is known for his love of fine stationery, especially if embossed with an official letterhead and featuring a signature.

This week, he fired off more than a dozen letters to world leaders detailing new tariff rates he intends to impose on their countries.

A day later, he threatened to slap a 200 per cent tariff on Australian pharmaceutical exports.

When it comes to his preferred method of communication, however, Israeli Prime Minister Benjamin Netanyahu is hip to his groove.

“I want to present to you, Mr. President, the letter I sent to the Nobel Prize committee,” he said this week. “It’s nominating you for the Peace Prize, which is well deserved. And you should get it.”

President Trump naturally lapped it up.

“Wow,” he said. “Thank you very much. Coming from you in particular, this is very meaningful.”

Perhaps this is the answer? Should Anthony Albanese write President Trump a letter, preferably with gold-embossed letterhead and not a black Sharpie?

What the Albanese government will not be doing is firing off any abusive letters to the RBA, as much as they might be less than thrilled with this week’s decision.

Treasurer Jim Chalmers adopted a more diplomatic approach when Australia’s Reserve Bank surprised the markets this week by not dropping rates again.

A 25 basis point cut would have saved Australians with an average $500,000 mortgage about $80 a month, or $956 a year.

A household with a $750,000 mortgage would save $120 a month, or an average annual saving of $1435.

But that wasn’t what happened.

Australia's treasurer Jim Chalmers holds a press conference interest rates. Picture: David Gray/AFP

Mr Chalmers says the Reserve Bank’s unexpected decision to hold the cash rate at 3.85 per cent was “not the result” Australians were hoping for.

“It’s not the result millions of Australians were hoping for or what the market was expecting,” he said.

“It’s a good thing to have people around the table that will tease out and contest the views, whether it’s of the Reserve Bank staff or the governor or others,” he added.

“We want these to be decisions which are taken after a lot of deliberation and debate and I think the fact that the Reserve Bank board was split on this occasion, that there wasn’t a unanimous view, is a signal that these decisions are deliberated and debated on properly.

“That’s a good thing.”

Opposition treasury spokesman Ted O’Brien said Labor’s failure to reduce spending meant rates had been kept “too high for too long”.

“This is a direct consequence of Labor not being able to manage money. Labor continues on its spending spree and as the RBA itself has recognised,” he said.

RBA governor Michele Bullock insisted the RBA needed to take a “sensible, cautious approach to lowering interest rates”.

However, she hinted at future rate cuts, stating: “We do see ourselves on an easing path, the question is timing.”

Originally published as Jim Chalmers and Donald Trump take very different approaches to Reserve Bank interest rate cut disappointments | Samantha Maiden