Trump says ‘loser’ Jerome Powell is waiting too long to cut interest rates

President Donald Trump lobbed a fresh series of insults at Fed Chair Jerome Powell on Monday while reiterated a call for lower interest rates, a move meant to address concerns about a slowing U.S. economy but one that risks reigniting inflation.

In a post on Truth Social, Trump claimed without evidence that “preemptive cuts” were being called for “by many” now that the economy was facing what he described as “virtually No Inflation.”

The economy now risks slowing, Trump said, “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

“Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”

Though Trump has long criticized Powell, whom he appointed during his first presidential term, the president’s complaints have ramped up in recent days amid a major market reaction to his tariffs shock.

Economic adviser Kevin Hassett also said last week the administration was “study(ing)” Trump’s options for removing Powell.

Firing Powell would be an unprecedented move: No president has ever removed a sitting Fed chair. The Fed has historically been a nonpolitical part of the government, and the prospect of Trump taking action has sparked concern that inflation would surge as he forced the central bank to ease up on its role of controlling price growth in favor of economic growth.

Markets extended their losses after the post, with the S&P 500 falling more than 2% and now down nearly 16% from its February peak, while the Dow Jones Industrial Average declined 750 points, or about 2%. Bond yields moved lower, meaning investors were seeking greater protection in safe-haven assets.

In referencing the slowing economy, Trump may be becoming more attuned to the negative shock his tariffs strategy is creating to growth.

A growing chorus of Wall Street firms and analysts increasingly foresee the U.S. economy entering a recession, something real-time measures of gross domestic product (GDP) are also showing

While it is true that the rate of inflation has slowed from the 9% high it saw at the height of the pandemic, the measure of price growth most closely observed by the Fed remains above its 2% target and actually accelerated in February.

Not all White House officials appear to be on board with pressuring Powell. Just last week, Treasury Secretary Scott Bessent told Bloomberg TV that the administration would begin interviewing candidates for Powell’s successor this fall, adding it would give the Trump administration about six months lead time before Powell officially leaves office when his term is up next year. He gave no further details.