Highlights
- Donald Trump has criticized Jerome Powell for indecision toward rate cuts.
- Recent US economic data indicates slowing inflation amid calls for interest cuts.
- However, the Fed is opting for a cautious approach amid Trump's global tariff wars.
US President Donald Trump has taken swipes at Fed Chair Jerome Powell over a sluggish stance toward interest rate cuts. In his latest salvo, Trump labeled the Fed Chair as “too late Powell” amid heightened calls for the Fed to slash interest rates.
Donald Trump Denounces Jerome Powell For Failing To Cut Interest Rates
Amid the calls for the US Federal Reserve to cut interest rates, US President Donald Trump has waded in to criticize Fed Chair Jerome Powell. In a Truth Social post shared on X, Trump took swipes at Jerome Powell for dragging his feet over interest rate cuts.
According to Trump, calls for rate cuts have reached deafening levels in the US, with a consensus forming on the issue. However, Donald Trump notes that Powell and the Fed appear poised to delay rate cuts, potentially harming economic progress.
“The consensus of almost everybody is that the Fed should cut rates sooner, rather than later,” said Trump. “Too late Powell, a man legendary for being too late, will probably blow it again – But who knows?”
Powell left interest rates unchanged at the last FOMC meeting in early May to the consternation of a broad spectrum of investors. The decision is the third by the Fed to keep interest rates unchanged, with Powell benchmarking interest rates at 4.25%-4%.
Previously, speculation of Donald Trump removing Powell as Fed Chair over a failure to cut rates reached a crescendo. However, Trump branded Powell a fool for keeping interest rates unchanged despite improving economic metrics.
Why Is Powell Keeping Interests Rates Unchanged?
As the markets figure out the Fed’s decision to keep interest rates unchanged, several theories have gathered steam. In his FOMC speech, Powell blamed tariffs for unchanged interest rate cuts, noting that inflationary forces are still holding sway. The Fed Chair noted that inflation is not declining as expected and trade tensions stoked by Donald Trump are creating an air of uncertainty.
However, soft PPI inflation data released in mid-May is painting a different economic picture. According to data released by the US Bureau of Labour Statistics (BLS), PPI data fell to 2.4% below expectations, pointing to cooling inflation metrics.
Investors have their sights on the Fed’s interest rate announcements given the seismic impact on cryptocurrency prices. Lower inflation rates typically affect crypto prices positively with investors increasing allocations to digital assets, spiking liquidity levels. As Donald Trump amplifies criticism for Powell, a change in stance to cut interest rates is poised to send prices on a rally.
- Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes
- SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes
- Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze
- Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500
- MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings
- XRP Price Forecast: Analyst Eyes $127 as BlackRock Joins Ripple Swell 2025
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?