US President Donald Trump has sharply criticized the monetary policy of the Federal Reserve System due to the interest rate. Specifically, Trump criticized the repeated refusal of Federal Reserve Chairman Jerome Powell to lower the benchmark interest rate. In a post on the social media platform Truth Social, Trump referred to the European Central Bank, which had already lowered the interest rate seven times since June 2024 for the Eurozone. Powell should have acted similarly and should have done so much earlier. The prices of oil and food had decreased, while the US would become wealthier due to the tariffs. However, Powell was acting too late and wrongly, Trump claimed and expressed the desire for the immediate dismissal of the central banker. “Powell’s dismissal could not come soon enough!” Trump stated. At the two-day meeting on March 18 and 19, the Federal Reserve System maintained the interest rate at 4.25 to 4.5 percent, which has been the case since December 2024. The decision was justified by the Fed with increasingly uncertain economic outlooks, as Powell explained during a press conference. The next meeting of the central bank is scheduled for May 6 and 7. In a speech on Wednesday at the Economic Club of Chicago, Powell emphasized that Trump’s tariffs would have negative effects on the inflation rate. The president’s policy could lead to the US economy deviating from its target indicators.
Trump Vows to Replace Fed Chairman for ‘Too Late and Wrong’ Actions
