Tensions Rise: Trump Criticizes Powell Over Fed Policies

U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell, calling for his termination and a reduction in interest rates. Trump's comments followed Powell's speech defending the Fed's independence amidst market volatility influenced by the administration's trade policies. Powell expressed concern over escalating tariffs affecting inflation and employment goals.

The ongoing friction between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell has intensified as Trump calls for Powell's termination and pushes for interest rate cuts.

In a post on Truth Social, Trump criticized Powell for not reducing interest rates sooner, drawing a comparison to the European Central Bank's actions. The Fed's current interest rate stands at 4.25%-4.50% following several cuts late last year.

Powell, speaking at the Economic Club of Chicago, emphasized the importance of the Fed's independence. He downplayed recent market volatility, attributing it to shifts in trade policy, not financial instability, and cautioned against the economic risks associated with Trump's tariffs.

(With inputs from agencies.)