President Donald Trump took to his social media platform on Thursday to blast Federal Reserve Chairman Jerome Powell over delays at lowering the benchmark interest rate.
Powell apparently drew the president’s ire over a speech that the Fed chair gave the previous day at the Economic Club of Chicago.
Trump wrote about how the European Central Bank was considering lowering interest rates and said the Fed should do the same thing.
“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!’” Trump wrote on Truth Social.
He went on to write that the Fed should have lowered interest rates long ago: “Powell’s termination cannot come fast enough!”
The Fed did cut the benchmark interest rate twice for a total of 75 basis points in 2024 and has signaled more cuts in the future.
In Wednesday’s speech, Powell said the U.S. economy remained in a “solid position,” but warned that tariffs imposed by the Trump administration would likely cause higher inflation and slower growth.
Powell also gave no indication that the Fed would be lowering the benchmark interest rate anytime soon.
“For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell said on Wednesday.
After Powell’s remarks, the Dow Jones Industrial Average fell nearly 700 points, or 1.73%, and the S&P 500 pulled back 2.24%.
Trump nominated Powell to serve as the chair of the central bank in 2017 and Powell was confirmed by the Senate in 2018. But Trump has in recent years taken to harshly criticizing the Fed in general and Powell specifically. Powell’s term runs through May 2026 so Trump will nominate his successor.
The Federal Reserve operates with a degree of independence to set interest rates and chart monetary policy without interference from Congress and the White House.
But there is concern that Trump could try to remove Powell before then, setting up a showdown that could undermine confidence in the U.S. financial system.
In Chicago, Powell said the Fed’s independence was a matter of law, that “was very widely understood and supported in Washington and Congress where it really matters.”
