US President Donald Trump on Thursday slammed Federal Reserve Chairman Jerome Powell, saying his “termination cannot come fast enough” after Powell warned that “tariffs likely to generate inflation.”
“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!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump wrote on his Truth Social platform.
“Powell’s termination cannot come fast enough,” he continued. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” he added.
These remarks came after the central bank chair’s statement on Wednesday, indicating that Trump’s comprehensive tariffs on trading partners could force the Fed to choose between addressing inflation and unemployment.
“Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell informed the Economic Club of Chicago, noting that the inflationary effects “could also be more persistent.”
“Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored,” he continued, reiterating similar points made earlier this month.
Powell indicated that whilst the Fed’s employment and inflation objectives were balanced, officials might encounter a “challenging scenario in which our dual-mandate goals are in tension.”
“You’ll probably see continued volatility,” Powell said.
“But I wouldn’t try to be definitive about exactly what’s causing that. I would just say markets are orderly and they’re functioning kind of as you would expect them to in this time of high uncertainty,” he added.
According to AFP, despite Trump’s persistent calls for Powell to reduce interest rates, the US central bank has maintained a cautious stance, keeping rates steady between 4.25 to 4.5 percent since 2023 began.
US financial markets declined after Jerome Powell’s statements, with the main Wall Street indices closing lower as investors sold technology shares.