U.S. President Donald Trump has intensified his campaign to pressure the Federal Reserve into cutting interest rates to prevent an economic slowdown, calling Fed Chair Jerome Powell a “major loser” and blaming him for acting “too late” on rate decisions.
Trump has criticized Powell for not acting swiftly to lower rates, warning that without immediate rate cuts, the U.S. economy could stagnate. However, Fed officials have warned that such action could worsen inflation, which remains above the Fed’s 2% target. Powell has signaled caution, stating the central bank needs time to assess the economic impact of the tariffs before making policy changes. The Fed’s current benchmark rate is expected to remain between 4.25% and 4.50% at its next meeting in early May.
Additionally, Trump has suggested he may remove Powell, a move that has raised concerns about the independence of the central bank and would likely further destabilize global markets.
