Trump Continues Criticizing Fed Chair Jerome Powell Over Interest Rates

President Donald Trump has made it clear that his criticisms of Federal Reserve Chairman Jerome Powell are far from over. Despite reassuring the public earlier this week that he had "no intention" of firing Powell, the President continues to voice his frustration with the Fed's policies, particularly Powell’s stance on interest rates.

In an interview from the Oval Office on Wednesday, Trump once again criticized Powell, stating that the Fed chair was "making a mistake by not lowering interest rates." Trump argued that Powell has been "too slow" to act on inflation, especially in recent years, and added that Powell’s appointment was a result of recommendations from people Trump wasn’t particularly pleased with.

The President's latest remarks came after he eased speculation about Powell’s future by assuring the press on Tuesday that he had no plans to remove him from his post. This reassurance helped calm financial markets, which had been unsettled by Trump’s earlier social media comments where he demanded Powell’s "termination" and described him as a "major loser."

Trump’s sharp words followed Powell’s comments last week, in which he warned that the administration's aggressive trade policies could lead to higher inflation and slower growth. Powell’s suggestion that the Fed might keep interest rates steady to counter these risks did not sit well with the President, who once again called for "pre-emptive rate cuts."

Trump’s demand for immediate action has been echoed on social media, where he criticized the Fed chair, labeling Powell as "Mr. Too Late" and pushing for the central bank to lower interest rates to avoid an economic slowdown. These comments have drawn widespread attention, reflecting growing tension between the President and the Fed, an institution traditionally known for its independence.

Despite Trump’s pressure, many Fed officials, including Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari, have urged a more measured approach. Hammack has stressed the importance of patience in the current economic climate, advocating for waiting to gather more data before making any drastic moves. Similarly, Kashkari pointed out that the bar for rate cuts is high at the moment, particularly in light of ongoing tariff-related inflation concerns.

Fed Governor Adriana Kugler also echoed these sentiments, emphasizing the need to keep rates steady until inflation shows clear signs of stabilizing. She added that while tariffs remain uncertain, their current level is likely to contribute to rising prices.

Powell has remained focused on the importance of price stability as the foundation for long-term economic growth, suggesting that the Fed will prioritize controlling inflation before making further moves on interest rates. However, his stance on the potential effects of tariffs on inflation remains cautious, with Powell acknowledging that the impact could be either short-lived or prolonged.

Trump’s continued push for action on interest rates highlights a broader conflict between the White House’s economic agenda and the Fed’s cautious approach. As the pressure builds, the Fed will likely remain focused on the long-term economic picture, while Trump’s calls for immediate intervention signal a deeper divide on how to handle inflation and growth moving forward.

Also Read: Trump May Replace Fed Chair Jerome Powell: Kevin Warsh and Waller Top List