WASHINGTON: US President Donald Trump said on Thursday (Apr 17) that “termination” of the independent head of the Federal Reserve “cannot come fast enough” as he lashed out at Jerome Powell’s warnings of tariffs-fueled inflation.
In a scathing post on his Truth Social app, Trump repeated a demand for Powell to lower interest rates, suggesting the Fed Chair’s decisions were “always TOO LATE AND WRONG”.
“Powell’s termination cannot come fast enough,” Trump wrote. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”
Trump was referring to the European Central Bank, which on Thursday lowered its benchmark deposit rate by a quarter point.
Powell warned Wednesday that Trump’s sweeping tariffs on virtually every trade partner could put the Fed in the unenviable position of having to choose between tackling inflation and unemployment.
Trump’s stop-start tariff policy has unnerved investors and trading partners, leaving them unsure about his long-term strategy and what it might mean for international trade.
Trump has repeatedly urged Powell to cut interest rates, but the US central bank has adopted a wait-and-see attitude, holding rates steady at 4.25 per cent to 4.5 per cent since the start of this year.
The Republican has frequently criticised the Fed chairman, whom he originally nominated during his first term, accusing Powell of playing politics in his role running the central bank.
On the campaign trail in August, Trump threatened that independence by suggesting the White House should have a “say” in setting monetary policy.
The US president does not have the authority to fire Federal Reserve governors directly. If he chooses to, Trump could initiate a lengthy process to attempt to unseat Powell by proving there was “cause” to do so.
