Trump Renews Attack on Jerome Powell Over Interest Rates

Former U.S. President Donald Trump has once again criticized Federal Reserve Chair Jerome Powell, accusing him of being “always late” when it comes to decisions on interest rates. Trump argues that the American economy is strong, inflation is easing, and stock markets are thriving — yet the Fed is keeping rates unnecessarily high.

Trump’s Case

Trump insists that the U.S. currently has the “best stock market ever” and that inflation is low enough to justify an immediate rate cut. He claims that high borrowing costs are hurting American consumers through mortgages, car loans, and credit card debt, and that Powell’s hesitation risks slowing down growth in key sectors such as housing and business investment.

The Fed’s Position

Jerome Powell and the Federal Reserve maintain that monetary policy decisions must be based on data, not political pressure. The Fed argues that while inflation has eased in recent months, underlying price pressures remain, and cutting rates prematurely could reignite inflation. Policymakers stress the importance of confirming a sustainable decline in inflation before easing policy.

The Political and Economic Stakes

Trump’s repeated criticism has both economic and political implications:

Financial markets: Pressure on the Fed creates uncertainty, which can fuel volatility.

Policy independence: Analysts warn that constant political interference could undermine the Fed’s credibility and its ability to stabilize the economy.

Voters: By pushing for lower rates, Trump positions himself as a defender of consumers and businesses struggling with borrowing costs, using the debate as part of his political narrative.

Bottom Line

Trump is leveraging favorable economic data — falling inflation indicators and record stock market highs — to argue for aggressive rate cuts. But the Fed remains cautious, prioritizing stability and guarding against the risk of a resurgence in inflation. The clash highlights a long-standing tension between political leaders seeking quick economic wins and a central bank mandated to take the long view.