Former U.S. President Donald Trump launched a fresh attack today on Federal Reserve Chair Jerome Powell, criticizing him for failing to cut interest rates amid growing economic challenges.

Speaking at a campaign rally, Trump accused Powell of “dragging his feet” and hurting American workers and businesses by keeping borrowing costs too high.

“Powell is doing tremendous damage,” Trump said. “He refuses to act when our economy needs a boost.”

The comments immediately grabbed headlines and stirred volatility in financial markets, with the Dow Jones briefly dipping into negative territory.

Trump, who has long been critical of Powell, renewed calls for an aggressive interest rate cut to stimulate economic growth ahead of the 2025 presidential election.

Many analysts view Trump’s attacks as an effort to pressure the Fed into action and to position himself as a champion of economic expansion.

Despite political criticism, the Federal Reserve has maintained that its decisions are based solely on economic data, not political influence.

“We remain focused on our dual mandate of price stability and maximum employment,” a Fed spokesperson said following Trump’s remarks.

Economic indicators show a mixed picture, with inflation cooling slightly but growth forecasts being revised downward in recent weeks.

Some economists argue that rate cuts could help cushion the economy from ongoing global trade tensions and domestic political uncertainty.

However, others warn that premature cuts might reignite inflation or destabilize financial markets.

Trump’s criticism adds pressure on Powell just ahead of the Fed’s next policy meeting, where interest rate decisions will be closely scrutinized.

Market expectations for a rate cut have risen slightly following Trump’s comments, though no clear consensus has emerged among analysts.

As the election season heats up, Trump’s focus on monetary policy is likely to remain a central theme of his economic messaging.