Trump renews attack on Jerome Powell, ‘too slow, keeps rates too high’ - Here's what he said

President Donald Trump once again sharpened the attack against Federal Reserve Chair Jerome Powell noting that he is ‘maintaining high interest rates’ and indicated he might call him.

“I haven’t called him. I might call him,” Trump said Wednesday evening in an Oval Office event. “I believe he’s making a mistake by not lowering interest rates, and I think, as well as we’re doing, we could do much better.”

He further said, “He’s keeping rates too high,” and accused the central bank chief of acting too slowly to raise rates several years ago during the early days of the inflation crisis. “He historically has been late…"

What did Trump say previously?

Trump has recently launched a series of attacks on Fed Chair Jerome Powell. He called Powell “a major loser” and said his “termination cannot come soon enough.” He even called the Fed Chair “Mr Too Late” for the delay in cutting benchmark interest rates, which has an impact on borrowing across the US. The Wall Street reported major losses after Trump's remarks on Powell.

Why did Trump soften his stance?

Following his scathing remarks on Fed chair, Trump softened his stance Tuesday, stating he had “no intention” of firing Powell after advisers warned Trump that terminating the central bank chief would have legal and economic consequences, according to a report by CNN citing people aware of the development.

On Wednesday, Trump further remarked, "He was recommended by a certain person I’m not particularly happy with.” Trump originally nominated Powell in 2017, but the relationship has become hostile over time. Joe Biden re-nominated him for a second term in 2022.

What did Powell say about Trump's tariff policies?

Trump's statement comes after Powell warned about the economic consequences of the latest tariff policies.

On the impact of tariffs imposed by Trump, Powell in his speech to the Economic Club of Chicago said,“unemployment is likely to go up as the economy slows."

“In all likelihood,” there will be higher inflation, which will be the portion of the burden of tariffs “paid by the public," he added.

Powell assured that prices would increase due to tariffs. However, he remains uncertain about the extent of inflation. He further called tariffs a “negative supply shock.”

What did Powell say about the independence of the Fed?

“Our independence is a matter of law,” Powell said, indicating that President Trump's statements did not impact the central bank. He assured that political pressure would not affect the Fed's decisions.

“We’re never going to be influenced by any political pressure,” Powell said. “People can say whatever they want, that’s fine. That’s not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors," he added.

Trump's initial dig at Powell

After announcing the reciprocal tariffs on April 2, Trump urged the Fed to cut the key benchmark interest rate. He cited low inflation and higher job rates as the “perfect time” to increase rates in the United States.

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months - A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” said Trump in his post.