President Donald Trump stated that any potential downturn in the U.S. economy would fall squarely on the shoulders of Federal Reserve Chair Jerome Powell, blaming him for resisting calls to cut interest rates.
Trump has repeatedly pushed Powell to lower rates and has even floated the idea of replacing him altogether.
Powell, however, has indicated that a rate cut is unlikely in the short term, warning that the administration’s tariff policies may contribute to both rising inflation and a spike in unemployment.
“‘Preemptive Cuts’ in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation,” Trump posted on Truth Social.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW. Europe has already ‘lowered’ seven times.
“Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala [Harris], get elected. How did that work out?”
Speaking to reporters in the Oval Office on Friday, Trump said Powell needs to act on falling inflation by slashing interest rates.
“If we had a Fed chairman that understood what he was doing, interest rates would be coming down. He should bring them down,” Trump said.
On Thursday, Trump escalated the pressure, saying that if he were to request Powell’s removal, “he’ll be out of there.”
“I don’t think he’s doing the job,” Trump said during the Oval Office briefing. “He’s too late. Always too late. A little slow. And I’m not happy with him. I let him know it.”
Despite the criticism, Powell has made it clear that he will not step down, stating that his position is secure and that he plans to serve his full term regardless of Trump’s wishes.
Powell’s current four-year term as head of the Federal Reserve runs through May 2026.
{Matzav.com}
