US President Donald Trump has intensified pressure on Federal Reserve Chairman Jerome Powell, labeling him a “major loser” and warning that the US economy could slow down unless interest rates are lowered immediately.
Trump made the comments on Truth Social, stating that there is “virtually no inflation” in the US and that energy costs are declining. He claimed that this trend suggests “almost no inflation” but warned of an economic slowdown unless Powell lowers interest rates.
The attacks come as Trump’s team explores whether they can legally fire Powell before his term expires in May 2026. However, Powell has stated that the president cannot remove him under the law.
Any attempt to fire Powell could trigger a sharp sell-off in US equity markets, according to Evercore ISI vice chairman Krishna Guha. “If you start to raise questions about Federal Reserve independence, you are raising the bar for the Federal Reserve to cut,” he said.
The stock market has already been affected by heightened uncertainty and Trump’s tariff plans. The Dow Jones Industrial Average fell 750 points on Monday, while the Nasdaq dropped 2.6%. The US dollar slid to its lowest level since 2022, sending investors to safe-haven assets like gold.
Source: https://www.cnbc.com/2025/04/21/trump-powell-attacks-interest-rates-fed.html