Former President Donald Trump has renewed his demands for the Federal Reserve to cut interest rates immediately.
Speaking to reporters, Trump criticized Fed Chair Jerome Powell, suggesting that rates would already be lower if Powell “knew what he was doing.”
Trump demands interest rate cuts as part of his broader strategy to stimulate economic growth ahead of the election cycle.
He cited falling prices in several sectors as justification for easing monetary policy.
The White House economic team, including adviser Kevin Hassett, is reportedly exploring legal avenues to remove Powell.
Although Powell previously stated that he cannot be fired under current law, Trump’s team is seeking a “new legal analysis” on the matter.
Trump’s public pressure campaign has intensified after Powell’s comments warning that new tariffs could fuel inflation.
Powell emphasized that trade policies could complicate efforts to maintain employment and price stability.
Trump’s social media posts have included personal attacks against Powell, calling him “Too Late Powell.”
The clash has alarmed economists who fear political interference could destabilize the U.S. financial system.
Trump demands interest rate cuts, arguing that lower borrowing costs are critical to maintaining economic momentum.
Meanwhile, the Federal Reserve continues to focus on balancing inflation control with labor market strength.
Markets remain volatile amid the uncertainty over future monetary policy decisions.
Some investors fear that Trump’s aggressive posture could undermine the Fed’s credibility.
Despite criticism, Powell has reaffirmed his commitment to completing his term through May 2026.
The battle between Trump and the Fed signals growing tensions between political and financial leadership in the U.S.
The potential legal fight over Powell’s position could set a major precedent for Federal Reserve independence.
In the short term, economic data releases will heavily influence Fed decision-making.
Whether Trump’s pressure campaign succeeds remains to be seen, but its impact is already being felt across financial markets.