Trump attacks Fed chair Powell
US President Trump has once again sharply attacked Jerome Powell, chairman of the Federal Reserve, calling on him to cut interest rates.
Commerzbank Economic Research
04/22/2025
Trump attacks Powell
Donald Trump has sharply attacked Federal Reserve Chairman Jerome Powell on Truth Social. With a view to last week's ECB's rate cut, Trump said that Jerome ‘Too Late’ Powell should have lowered key interest rates long ago. Therefore, Powell's termination cannot come soon enough. [For the complete quotes, see box below]
Yesterday, on 21 April, Trump followed up. Preemptive interest rate cuts were being called for by many, he said, as there was hardly any inflation left. However, growth could slow down if ‘Mr Too Late’ (Jerome Powell), a ‘major loser’, did not cut interest rates immediately. Powell is always too late, Trump said, except during presidential election campaigns, when he cut interest rates to support Kamala Harris' election.
In a press briefing, Kevin Hassett, director of the National Economic Council, said that the White House is exploring ways to replace Powell.
The financial markets reacted with concern to this attack on the Fed's independence: stocks came under pressure, yields rose and gold climbed to almost $3,500 an ounce.
For full text see attached PDF-Version.
