President Donald Trump continued lambasting Federal Reserve Chair Jerome Powell while demanding interest rate cuts on Thursday. Trump nominated Powell to serve as chair of the board of governors of the Federal Reserve System during his first term in office, and then-President Joe Biden later nominated Powell for a second term.
However, Trump has soured on Powell and wants him out of the job. In a fiery Truth Social post on Thursday morning, the president declared, “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
The president’s latest broadside against Powell came after the Fed chair delivered remarks on Wednesday, during which he discussed the economic and monetary policy outlook.
“So, at the Fed, we are always focused on the dual mandate goals that Congress has given us: Maximum employment and stable prices. Despite heightened uncertainty and downside risks, the U.S. economy is still in a solid position. The labor market is at or near maximum employment. Inflation has come down a great deal, but is still running a bit above our two percent objective,” Powell said during his remarks.
He said that the level of tariff hikes that have been announced “is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
Trump has been applying public pressure on Powell and calling for rate cuts.
In a Truth Social post earlier this month, the president declared, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
When Powell was asked last year whether he would resign if Trump asked him to do so, the Fed chair flatly replied, “No.”
