Investing.com -- President Donald Trump has expressed his dissatisfaction with Federal Reserve Chair Jerome Powell, suggesting that his termination from the position should be expedited. Trump's comments, shared on his Truth Social platform Thursday, indicate his belief that the US central bank should have already lowered interest rates this year, and should do so immediately.
Trump referred to Powell as "Too Late" in his post, stating that "Powell's termination cannot come fast enough!" The context of this statement, however, remains unclear. It is unknown whether Trump was alluding to the scheduled end of Powell's term or if he was advocating for Powell's removal as chair. The White House has not yet provided any comments.
Powell's term as chair is set to continue until May 2026, and his term as a governor is expected to last until February 2028. Trump's recent criticism of the Fed echoes the sentiments he expressed during his first term as president. This could potentially reignite discussions in Washington about the central bank's autonomy from the White House. Trump's decision to increase tariffs globally has sparked worries about a potential slowdown in domestic growth and price hikes, adding complexity to the Fed's policymaking.
Trump's comments were made shortly before the European Central Bank was predicted to cut interest rates for the seventh time, a move Trump highlighted in his post. He criticized Powell's recent report, calling it a "complete mess," and noted that oil and grocery prices have fallen, and that the US is "getting RICH" on tariffs.
During a speech at the Economic Club of Chicago on Wednesday, Powell emphasized the Fed's responsibility to prevent tariffs from causing a sustained rise in inflation. "Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell stated.
Following Powell's speech, US stocks saw extended losses, though futures were up Thursday morning. Trump's full quote was, "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!"
This content was originally published on Investing.com
