The post Trump Slams Powell Over Rate Cuts: ‘Too Late and Wrong!’ Calls for Fed Chair’s Removal appeared first on Coinpedia Fintech News
U.S. President Donald Trump slammed Fed Chair Jerome Powell on Thursday, saying he’s “always too late and wrong” for not cutting interest rates. Trump believes the Fed should have acted way sooner to support the economy.
He notes that the European Central Bank might have already cut rates multiple times while Powell has been slow to act. Trump also mentioned in his post that oil prices and groceries, including eggs, have gone down and the US is benefitting from tariffs.
Trump Calls For Powell’s Termination
He notes that Powell should have acted sooner but he still needs to reduce the rates now. He also expressed frustration over Powell’s leadership, calling for his removal. “Powell’s termination cannot come fast enough!” he said.
In his Wednesday speech, Powell stated that the Fed would wait for more economic data before adjusting the interest rates. He also warned that the tariff policies could further push jobs off the track. Besides, he also added that the recent market volatility is a natural reaction to the administration’s shifting trade policies, and that is not something that the Fed requires to intervene.
“For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell said in his speech to the Economic Club of Chicago.
Powell’s Remarks Add to The Tensions
Powell said that the US tariffs could raise inflation and the public would end up paying for it. Trump also called Powell’s report ‘a complete mess’ and warned that Trump’s extensive tariffs on trade partners could force the Fed to make a difficult choice between tackling inflation and rising unemployment. Notably, these remarks further escalates the tensions between the White House and the Fed amidst a politically charged economic period.
Trump’s sweeping and unpredictable tariff policies have left the investors and trade partners unsettled and worrying over its potential impact on international trade. While Trump has urged Powell to cut rates, the Central Bank has held the interest rates steady at 4.25 to 4.5% since the start of the year.
