President Donald Trump renewed his attacks on Federal Reserve Chair Jerome Powell on Tuesday, criticizing the central bank’s decision to keep interest rates high despite recent signs of slowing inflation.
In a Truth Social post, Trump accused Powell of being slow to act compared to other nations, writing: “No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! THE FED must lower the RATE, like Europe and China have done.”
“What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!” Trump added.
Trump has repeatedly urged the Fed to cut rates to stimulate the economy and offset inflation tied to his new tariffs on imported goods. The Fed, however, has kept its benchmark interest rate unchanged between 4.25% and 4.5%, citing lingering inflation risks and a still-strong labor market.
April's Consumer Price Index showed prices rose 2.3% annually, while core inflation, which strips out food and energy, remained higher at 2.8%. The Fed’s preferred inflation metric, the PCE index, also reflected a 2.3% annual rise in March.
Despite Trump’s claim that inflation is under control, economists warn that tariffs could push prices higher. Since tariffs are paid by U.S. importers, the costs are often passed on to consumers.
Trump has previously clashed with Powell and even floated firing him during his first term, though legal experts have noted the Fed’s chair can only be removed for cause, preserving the institution’s independence.
A recent Goldman Sachs report echoed that sentiment, noting that central bank independence is critical to keeping inflation low and the economy stable. According to the report, politicizing the Fed could result in higher inflation, lower stock values, and a weaker U.S. dollar.