Trump pressures Powell again to cut rates, criticizes Fed fo...

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04-08-2025 12:10

Trump pressures Powell again to cut rates, criticizes Fed for delayed action

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Trump pressures Powell again to cut rates, criticizes Fed for delayed action

US President Donald Trump remains fixated on what he sees as an excessively high benchmark interest rate. Sleepless and restless, he continues to call on the Federal Reserve to act. Once again, the head of state has demanded that Fed Chair Jerome Powell lower the key interest rate and even labeled him as "late."

Not so long ago, President Trump renewed his call for Powell to cut rates, citing what he described as strong economic data as justification. Trump expressed complete confidence in this assessment.

However, current statistical data is far from ideal. Even so, Trump considers the annualized 3% GDP growth rate acceptable. He emphasized that the current economic growth figures appeared to exceed earlier expectations. "'Too Late' MUST NOW LOWER THE RATE. No Inflation! Let people buy and refinance their homes," Trump posted on Truth Social.

For several months, Trump has relentlessly criticized the Fed chair for refusing to ease monetary policy. At the end of June, the president labeled Powell "too political," "a fool," and "a very stupid person," and now, "late" has been added to the list of unflattering epithets.

Powell’s term is set to expire in May 2026. Amid rising tensions, Trump recently had to deny rumors about plans to dismiss the Fed chair prematurely. Last week, the president also visited the Federal Reserve’s historic buildings to assess the scope and cost of renovation work, following allegations of excessive spending.

The disagreement eventually escalated into a public exchange over the renovation budget. Some analysts suggest that this growing criticism may be paving the way for Powell’s possible removal for cause. Trump pointed to increased renovation costs, which he claimed have reached $3.1 billion. Powell responded by clarifying that the budget did not include one of the buildings constructed five years ago.

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Forex humour