Trump's Ongoing Feud with Jerome Powell Heats Up Over Interest Rates

President Trump criticized Federal Reserve Chair Jerome Powell for not aggressively cutting interest rates, suggesting his removal. Trump cited low oil prices and tariffs as reasons for rate cuts. Powell, committed to Fed independence, said decisions are made in Americans' best interests, unaffected by political pressure.

In a fresh critique of Federal Reserve Chair Jerome Powell, President Donald Trump expressed his frustration with the central bank's reluctance to aggressively slash interest rates. Trump suggested that Powell's 'termination cannot come fast enough,' despite his term not expiring until next year.

Addressing Trump's tariffs, Powell acknowledged that these had complicated the Fed's policy decisions, with the need for 'greater clarity' before any interest rate changes. Trump, citing a drop in oil prices and increased tariff revenues, insists the rates should have been lowered earlier, referencing recent actions by the European Central Bank.

Powell, initially appointed by Trump in 2017 and reappointed by President Biden, reiterated his commitment to making decisions based on what benefits Americans, free from political influence. He emphasized the Fed's legal independence, indicating no intent to resign amid political pressures.

(With inputs from agencies.)