President Trump slammed Federal Reserve Chair Jerome Powell again on Monday. He called Powell a "major loser" and demanded immediate "preemptive cuts" to interest rates.
"'Preemptive cuts' in Interest Rates are being called for by many," Trump posted on Truth Social. He claimed energy and food costs are dropping and inflation is nearly gone. "There is virtually No Inflation," he insisted.
Trump argued the economy could slow down without action. “With these costs trending down so nicely… there can almost be no inflation,” he said. “But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
This isn't new. Last week, Trump wrote Powell is “always TOO LATE AND WRONG.” He added, “Powell's termination cannot come fast enough.”
At a Thursday press conference, Trump pushed further. “He should do the rate cuts,” Trump said, noting Europe has already acted. “If I want him out, he'll be outta there real fast. Believe me.”
Powell, however, plans to finish his term, which ends in May 2026. After the 2024 election, he confirmed he wouldn’t resign if Trump asked. “Not permitted under the law,” Powell said.
Trump’s constant jabs have sparked concerns about the Fed’s independence. Critics worry his pressure could undermine its credibility.
Austan Goolsbee, head of the Chicago Fed, warned about this on CBS Sunday. “Monetary independence from political interference… is really important,” he said.
He added that countries without it face worse inflation and slower growth. “I strongly hope that we do not move ourselves into an environment where monetary independence is questioned,” he said.