U.S. President Donald Trump has again criticized the Federal Reserve and its Chairman Jerome Powell, urging immediate interest rate cuts to prevent a potential recession. In a Truth Social post, Trump claimed that inflation is decreasing and warned that if Powell doesn’t act promptly, economic growth could slow down. This criticism coincided with a decline in the U.S. stock market, with the S&P 500 index dropping by up to 2%.
Trump is displeased with the Fed’s cautious approach, and one of his advisors hinted at considering Powell’s removal, raising concerns over the Fed’s independence amid the U.S.-China trade tensions. Trump argues high rates hinder loans, trade, and consumption.
