President Donald Trump criticized Fed Chair Jerome Powell, calling for lower interest rates to address concerns about a slowing U.S. economy. Trump claimed that “preemptive cuts” were necessary due to “virtually No Inflation.” He accused Powell of being “To Late” and suggested that Powell’s actions during the election period were meant to benefit his political opponents. Trump’s complaints have intensified amid market reactions to his tariffs. Economic adviser Kevin Hassett said the administration was studying options to remove Powell, which would be unprecedented. This move could spark inflation fears as Trump may push the Fed to prioritize economic growth over price stability. The post caused market losses, with the S&P 500 and Dow Jones Industrial Average declining. Bond yields moved lower as investors sought safe-haven assets. Some Wall Street firms and analysts predict a recession as real-time GDP measures show a slowing economy. Despite a slight decrease in the inflation rate, it remains above the Fed’s 2% target and accelerated in February. Treasury Secretary Scott Bessent indicated that the administration would start interviewing Powell’s successor this fall, suggesting a six-month lead time before Powell’s term ends next year. The discord within the White House over pressuring Powell indicates differing opinions on how to address economic challenges.
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