Topline
President Donald Trump attacked Federal Reserve Chair Jerome Powell Thursday morning, saying his removal “cannot come fast enough” after the central bank chief warned Trump’s tariffs are likely to worsen inflation.
FILE PHOTO: President Donald Trump criticized Federal Reserve Jerome Powell for the central bank’s … More
Key Facts
In his post, Trump mentioned reports of an upcoming rate cut by the European Central Bank and lashed out at Powell for being “TOO LATE AND WRONG,” for refusing to do the same.
On Wednesday, Powell addressed the Economic Club of Chicago and said Trump’s tariffs are “highly likely to generate at least a temporary rise in inflation.”
Trump pushed back against Powell’s speech in his post, saying it was a “typical, complete ‘mess!’”
In an apparent pushback against the inflation comment, the president claimed that grocery and global oil prices were down and noted, without offering evidence, that the “USA is getting RICH ON TARIFFS.”
Trump again said Powell should have lowered borrowing rates “long ago” and should “certainly lower them now,” despite the Fed chair signalling otherwise.
The president ended his post saying, “Powell’s termination cannot come fast enough!”
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What Did Powell Say In His Speech On Wednesday?
After noting tariffs could cause high inflation, the Fed Chair told the Economic Club of Chicago that the central bank faced a “challenging scenario in which our dual-mandate goals are in tension.” The comment was about the Fed’s efforts to both keep inflation under control and maintain a strong job market, which would likely be jeopardized if the U.S. faces an economic slowdown as a result of the tariffs. Despite Trump’s repeated demands to cut rates, Powell signaled the Fed may take a wait-and-see approach: “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
When Does Powell’s Term End?
Powell’s chairmanship of the federal reserve runs till March 2026, while his term as a governor of the central bank will be completed in February 2028.
This is a developing story.