Trump Attacks Powell for Not Cutting Interest Rates and Demands the Removal of the US Federal Reserve Chair

President Trump has been more critical of Fed Chairman Powell, accusing him of not lowering US interest rates.

In a new outburst against Federal Reserve Chair Jerome Powell, US President Donald Trump said on social media that “his termination cannot come fast enough!” Powell had resisted requests to lower interest rates despite mounting economic instability around the world.

Trump’s remarks coincided with the European Central Bank’s (ECB) third rate drop of the year, which it attributed to “rising trade tensions.” The ECB lowered the benchmark rate to 2.25%.

Trump wrote, “He should definitely lower interest rates now, but Too Late should have done so long ago, like the ECB.”

Official data contradicts Trump’s assertions that his strong tariff policy is helping US consumers, as egg costs have risen to $6.23 per dozen, and the BBC has found no concrete proof that tariffs are helping the nation.

Powell was criticized by the President, who nominated him in 2017 to replace Janet Yellen, for being “always TOO LATE AND WRONG” in lowering interest rates, arguing that the US was becoming “RICH ON TARIFFS.”

Powell, however, cautioned on Wednesday that tariffs would have a significant negative economic impact.

Powell said, “The magnitude of the tariff increases announced thus far is substantially greater than expected.”

“The economic effects, which will include slower growth and higher inflation, are probably going to be the same.”

Following ongoing market turbulence fueled by Trump’s decision to impose broad tariffs on products from China and other trading partners, the Fed released its somber view. With limited exceptions, US tariffs on Chinese goods currently stand at 145%, but when added to earlier rounds, the total charges on certain shipments could reach 245%.

Powell was defended by ECB President Christine Lagarde, who emphasized the importance of central bankers’ professionalism and respect for one another.

“I greatly admire my friend and respected colleague Jay Powell,” Lagarde remarked.

Economists caution that Trump’s trade policies are bringing the US economy closer to stagflation, a dangerous combination of high inflation and declining growth, even as he continues to advocate for lower borrowing costs.

The International Monetary Fund (IMF) has insisted that there isn’t yet a global recession, but as domestic political pressures increase and US-China relations worsen ahead of the presidential elections, caution is still advised.