US President Donald Trump is once again up in arms as Federal Reserve Chair Jerome Powell refuses to lower interest rates, much to the frustration of the White House. Despite repeated calls and demands from the president, Powell is sticking to his guns.
The latest round of criticism came after new labor market data, which Trump used as fresh justification for urging the Fed to ease monetary policy. "Too late, Powell must now lower the rate," Trump wrote on social media, referring to the Automatic Data Processing (ADP)'s non-farm job numbers. "He is unbelievable!!!" Trump declared on his Truth Social platform.
The president also pointed out that the European Central Bank has already cut rates at least nine times, implying the Fed is lagging behind.
This is not the first time Trump has expressed disdain for Powell’s leadership. He has previously labeled him a “major loser,” warning that failure to lower rates could slow the US economy.
For his part, Powell did not stay silent. He responded that Trump’s tariff policies are driving up prices while also contributing to an economic slowdown and weakening labor market conditions. In his view, the administration’s actions could make it more difficult for the Fed to achieve its 2% inflation target.
