Powell's exit 'can't come fast enough', says Trump in blistering attack on the Federal Reserve chief

Donald Trump has unleashed a sharp rebuke against the chairman of the Federal Reserve, asserting that his “dismissal” as the US central bank head “cannot happen rapidly enough.”

Trump’s Criticism of Federal Reserve Chair

In a remarkable social media outburst, the former US president strongly criticized Jerome Powell for his hesitance to lower interest rates within the world’s leading economy, sarcastically labeling him ‘Too Late’.

ECB Rate Cut Amid Economic Pressures

These remarks surfaced as the European Central Bank (ECB) implemented its seventh interest rate reduction in the Eurozone within a year, bringing the rate down to 2.25 percent. This measure aims to bolster a struggling economy grappling with the impact of Trump’s tariffs.

Bank of England Expected to Follow Suit

The Bank of England is also anticipated to take similar action, with a prospective fourth interest rate cut in the UK since August expected next month.

Federal Reserve’s Stance on Interest Rates

The Federal Reserve previously lowered interest rates in the United States from a range of 5.25 percent to 5.5 percent to a band of 4.25 percent to 4.5 percent in the prior year. However, it has resisted further decreases this year, despite ongoing pressure from Trump.

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Powell’s Warning on Trade War Impact

Speaking in Chicago on Wednesday evening, Powell cautioned that the trade conflict initiated by the president would lead to “increased inflation and diminished growth” in the United States.

Call for ‘Greater Clarity’ Before Further Rate Cuts

Nevertheless, Powell indicated that the central bank should “await greater clarity” before implementing additional rate cuts.

Defense of Fed’s Independence

Powell additionally emphasized that the Federal Reserve’s “autonomy is broadly understood and supported in Washington and within Congress, where it truly holds significance.”

Trump’s Accusation of Being ‘Too Late and Wrong’

This stance triggered an indignant reaction from Trump, who utilized social media to express his views, asserting that Powell was “consistently too late and misguided,” and denouncing the speech as “another, and typical, complete mess.”

Demand for Immediate Rate Reduction

‘”Too Late” should have decreased interest rates, similar to the ECB, a considerable time ago, but he should certainly reduce them now. Powell’s termination cannot occur rapidly enough.’

Powell’s Term and Fed Independence

Powell assumed the position of Federal Reserve chairman in 2018, during Trump’s initial presidential term, and is scheduled to remain in office until May 2026, having been reappointed under Joe Biden in 2022.

It remains uncertain whether Trump has accepted Powell completing his term or intends to remove him, a move that would constitute a significant challenge to the Fed’s independence.

Democratic Leader Condemns Trump’s Comments

Chuck Schumer, the Senate’s Democratic leader, denounced Trump’s remarks, stating yesterday: “A self-governing Federal Reserve is crucial for a robust economy – an element that Trump has demonstrated is not a priority for him.”

ECB Warning on Growth Outlook

The ECB’s rate cut was accompanied by a warning: “The outlook for economic growth has weakened as a result of escalating trade tensions.”

“Heightened uncertainty is expected to diminish confidence among households and businesses, and the unfavorable and volatile market response to trade disputes is likely to exert a tightening effect on financing conditions.”