Trump's Challenge to Jerome Powell: A Clash Over Federal Reserve Policies

U.S. President Donald Trump has intensified criticism of Federal Reserve Chair Jerome Powell, blaming him for not cutting interest rates in line with the European Central Bank. With Trump's contested tariffs affecting U.S. economic outlook, tensions rise over interest rate decisions and inflation fears.

President Donald Trump expressed strong dissatisfaction with Federal Reserve Chair Jerome Powell, stating that his termination 'cannot come fast enough.' He criticized Powell for not lowering U.S. interest rates in response to economic challenges, insisting that action is needed, similar to the European Central Bank's recent rate cut.

Trump's policies, particularly his tariffs, have contributed to a challenging economic outlook, with recession fears and potential inflation increases. Powell, emphasizing the importance of the Fed's independence from political pressure, stated the central bank would not adjust policy settings hastily without more clarity on the economy's trajectory.

The tension reflects deeper issues facing the U.S. economy, as the Federal Reserve navigates conflicting pressures from policy changes. Powell insists on a careful approach to rate adjustments amid fluctuating global conditions, aligning with the Fed's congressional mandate on monetary policy management.

(With inputs from agencies.)