President Trump slammed the “too late” Federal Reserve chair Jerome Powell after he warned of the economy facing stagflation due to the president’s sweeping tariff agenda, adding that his termination cannot come soon enough.
“The [European Central Bank] 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 typically complete ‘mess!’” Trump wrote said in a Thursday morning post on Truth Social.
Trump argued that oil prices are down, groceries, including eggs, are down and the U.S. is “getting RICH ON TARRIFS.” He said that Powell should have lowered interest rates like the European Central Bank and should lower them now.
“Powell’s termination cannot come fast enough!” he added.
Markets sunk on Wednesday after Powell warned of stagflation risks facing the economy. He argued that the economy could be “moving away” from its goals of stable prices and maximum employment, stating that he doesn’t think there will be “any progress” for the rest of the year.
“The data we have in hand so far suggest that growth has slowed in the first quarter of this year,” he said on Wednesday in Chicago.
Trump’s Thursday morning post isn’t the first time he has expressed annoyance with Powell, who he nominated for chair in 2017.
The president is eager for the Fed to speed up its planned interest rate cuts and ease the pressure in the economy as there is continued tension regarding his tariff plan.
Instead, the Fed is planning for a potential price shock driven by the trade agenda, which would delay rate cuts regardless of if the economy weakens.
Powell is unlikely to be forced out of his position, even if tensions with Trump rise before his term is up next year. Still, these experts say it is a possibility given how the president has asserted himself within his first few months back in office.
