Trump pressures Fed chair Powell to cut interest rates
Trump reignites feud with Fed Chair Powell, demands immediate rate cuts.
President Donald Trump has reignited his long-standing feud with Federal Reserve Chair Jerome Powell, threatening once again to remove him for refusing to cut interest rates.
In a sharply worded Truth Social post on Thursday, Trump derided Powell—now dubbed “Too Late Jerome”—for what he called poor economic management and accused him of delaying action even as other central banks, such as the European Central Bank (ECB), are preparing their seventh rate cut, reports Cryptopolitan.
“Powell’s termination cannot come fast enough!” Trump wrote, criticizing the Fed’s latest report as a “complete mess” and urging immediate rate reductions. Trump cited lower oil and grocery prices, and claimed the U.S. is benefiting from tariff revenue—evidence, he argued, that now is the time to ease monetary policy.
Powell holds steady, citing dual mandate and trade-related risks
Just a day earlier, Powell told reporters the Federal Reserve must carefully weigh the risks of inflation against those of a weakening labor market—both central to the Fed’s dual mandate. The Fed Chair acknowledged that Trump’s trade war has complicated the economic outlook, creating potential scenarios where prices rise due to tariffs while job growth slows.
“We would consider how far the economy is from each goal,” Powell said, “and the potentially different time horizons over which those respective gaps would be anticipated to close.” He stressed that the central bank is not in a rush, citing high uncertainty in the policy environment.
While Trump calls for immediate action, Powell emphasized a wait-and-see approach, noting the Fed is “well positioned to wait for greater clarity before considering any adjustments.”
Markets react as global monetary policy diverges
Despite Powell’s caution, U.S. stock futures rose Thursday, buoyed by strong earnings from Taiwan’s TSMC. The Nasdaq gained 1.2% in premarket trading and S&P 500 futures climbed 1%, rebounding from a sharp sell-off a day earlier.
Meanwhile, European equities dipped, the euro weakened to $1.1372, and gold surged to a new high. Investors are now turning attention to the ECB, which is expected to issue another rate cut amid ongoing global trade tensions and weak regional growth. If enacted, the move would reduce the ECB’s deposit facility rate to 2.25%, marking its lowest in years.
Recently we wrote that Goldman Sachs has reduced its recession probability from 65% to 45%, revising its outlook following President Donald Trump’s announcement of a 90-day pause on new tariffs.
