Donald Trump Criticizes Jerome Powell, Urges Fed Rate Cuts

US President Donald Trump has taken swipes at Fed Chair Jerome Powell over a sluggish stance toward interest rate cuts. In his latest salvo, Trump labeled the Fed Chair as “too late Powell” amid heightened calls for the Fed to slash interest rates.

Donald Trump Denounces Jerome Powell For Failing To Cut Interest Rates

Amid the calls for the US Federal Reserve to cut interest rates, US President Donald Trump has waded in to criticize Fed Chair Jerome Powell. In a Truth Social post shared on X, Trump took swipes at Jerome Powell for dragging his feet over interest rate cuts.

According to Trump, calls for rate cuts have reached deafening levels in the US, with a consensus forming on the issue. However, Donald Trump notes that Powell and the Fed appear poised to delay rate cuts, potentially harming economic progress.

“The consensus of almost everybody is that the Fed should cut rates sooner, rather than later,” said Trump. “Too late Powell, a man legendary for being too late, will probably blow it again – But who knows?”

Powell left interest rates unchanged at the last FOMC meeting in early May to the consternation of a broad spectrum of investors. The decision is the third by the Fed to keep interest rates unchanged, with Powell benchmarking interest rates at 4.25%-4%.

Previously, speculation of Donald Trump removing Powell as Fed Chair over a failure to cut rates reached a crescendo. However, Trump branded Powell a fool for keeping interest rates unchanged despite improving economic metrics.

Why Is Powell Keeping Interests Rates Unchanged?

As the markets figure out the Fed’s decision to keep interest rates unchanged, several theories have gathered steam. In his FOMC speech, Powell blamed tariffs for unchanged interest rate cuts, noting that inflationary forces are still holding sway. The Fed Chair noted that inflation is not declining as expected and trade tensions stoked by Donald Trump are creating an air of uncertainty.

However, soft PPI inflation data released in mid-May is painting a different economic picture. According to data released by the US Bureau of Labour Statistics (BLS), PPI data fell to 2.4% below expectations, pointing to cooling inflation metrics.

Investors have their sights on the Fed’s interest rate announcements given the seismic impact on cryptocurrency prices. Lower inflation rates typically affect crypto prices positively with investors increasing allocations to digital assets, spiking liquidity levels. As Donald Trump amplifies criticism for Powell, a change in stance to cut interest rates is poised to send prices on a rally.

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Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

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