In a fiery statement that’s sending ripples through financial markets, President Donald Trump has once again unleashed sharp criticism at Federal Reserve Chair Jerome Powell, accusing him of deliberately stalling interest rate cuts for political reasons.
Speaking to reporters, Trump didn't mince words, saying:
“Interest rates should be coming down now.”
He went on to contrast the Fed’s stance with that of central banks in Europe, noting:
“Europe is cutting rates but our guy wants to play cute.”
The President’s remarks reflect his long-standing frustration with Powell, whom he appointed in 2018, but has since turned into a frequent target of criticism. Trump further labeled Powell as "terrible" and claimed that Federal Reserve officials “are not very smart people.”
The comments come at a time when global central banks, including the European Central Bank (ECB), have been signaling or implementing rate cuts to stimulate their economies amid signs of a slowdown. Investors have been watching the Fed for any hint of a rate cut, especially as inflation shows signs of cooling.
Adding even more fuel to the fire, Trump suggested that Powell’s job security could be at risk, stating that Powell would leave his position if the President asked him to. Trump bluntly added,
“I am not happy with him.”
Trump’s public rebuke is likely to add more pressure on Powell and the Federal Reserve ahead of its next policy meeting. Market watchers are now speculating whether this political pressure will weigh on the Fed’s decision-making, which is designed to remain independent from the White House.
This isn’t the first time President Trump has criticized Powell. Throughout his first term and now into his second, Trump has repeatedly pushed for lower interest rates, arguing they are essential to fuel economic growth and keep the U.S. competitive on the global stage.
Disclaimer:
This article is for informational purposes only and reflects statements made by public officials. It does not constitute financial advice or investment recommendations. Market participants are advised to conduct their own research or consult a financial advisor before making any investment decisions.
