Trump ramps up attacks on Powell, demands 'loser' Fed chair lower rates 'NOW' [View all]

Source: CNBC

Published Mon, Apr 21 2025 9:46 AM EDT


President Donald Trump on Monday ratcheted up his pressure campaign on Federal Reserve Chairman Jerome Powell, calling him a “major loser” and warning that the U.S. economy could slow down unless interest rates are lowered immediately. ″‘Preemptive Cuts’ in Interest Rates are being called for by many,” Trump wrote on Truth Social.

Trump claimed that there is currently “virtually No Inflation” in the U.S., and that costs for energy and “most other ‘things’” are on the decline. “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote.

Trump’s latest salvo against Powell — whom he appointed during his first administration — came as the president and his team are studying whether they can legally fire the central bank leader before his term expires in May 2026. Powell has flatly stated that the president cannot remove him under the law.

Any attempt by Trump to fire Powell would likely trigger a steep sell off in U.S. equity markets, Evercore ISI Vice President Krishna Guha told CNBC on Monday.

Read more: https://www.cnbc.com/2025/04/21/trump-powell-attacks-interest-rates-fed.html

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He did those threats during the first term, triggering a pause in rate hikes but COVID was what eventually triggered the big rate cuts as businesses completely shut down.