Trump intensifies criticism of Powell, insists ‘failure’ Fed chair reduce rates ‘IMMEDIATELY’
Jerome Powell, chairman of the US Federal Reserve, during an Economic Club of Chicago event in Chicago, Illinois, US, on Wednesday, April 16, 2025. Jamie Kelter Davis | Bloomberg | Getty Images
President Donald Trump on Monday intensified his pressure campaign on Federal Reserve Chairman Jerome Powell, labeling him a “major loser” and warning that the U.S. economy could experience a slowdown unless interest rates are reduced immediately. “‘Preemptive Cuts’ in Interest Rates are being called for by many,” Trump wrote on Truth Social.
Trump asserted that there is currently “virtually No Inflation” in the U.S. and that energy costs along with “most other ‘things'” are decreasing. “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,” Trump wrote.
Trump’s latest remarks against Powell—who he appointed during his first administration—came as the president and his team are evaluating whether they can legally remove the central bank leader before his term expires in May 2026. Powell has firmly stated that the president cannot dismiss him under the law.
Any attempt by Trump to remove Powell would likely trigger a significant sell-off in U.S. equity markets, according to Evercore ISI vice president Krishna Guha. “If you start to raise questions about Federal Reserve independence, you are raising the bar for the Federal Reserve to cut. If you actually did try to remove the Federal Reserve chairman, I think you would see a severe reaction in markets with yields higher, dollars lower, and equities selling off,” Guha said.
“I can’t believe that that’s what the administration is trying to achieve,” Guha added.
The stock market, already facing significant uncertainty and other issues stemming from the Trump administration’s sweeping tariff plans, declined further on Monday morning. The Dow Jones Industrial Average plummeted 750 points, a nearly 2% drop, within the first hour of trading, while the Nasdaq dropped 2.6%. Meanwhile, the U.S. dollar fell to its lowest level since 2022. The turbulence in global markets has prompted investors to seek refuge in safe-haven assets like gold, which reached a record high price on Monday, while the benchmark 10-year Treasury yield ticked upward.
Trump’s recent criticism of Powell followed the central bank leader’s comment last week that the president’s trade war could stifle growth and lead to inflation. Tariffs are “likely to move us further away from our goals … probably for the balance of this year,” Powell said at the Economic Club of Chicago.
Powell also refrained from indicating that interest rate cuts were imminent. “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance,” he stated.
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