Trump criticizes Fed Chair Powell, calls for interest rate cuts
U.S. President Donald Trump expressed frustration with Federal Reserve Chair Jerome Powell, stating on Thursday that Powell's termination "cannot come fast enough."
The U.S. Federal Reserve is widely expected to hold interest rates steady at its policy meeting on Wednesday, as signs of easing inflation and continued job growth clash with increasing pressure from President Donald Trump to slash rates amid the first economic contraction in three years.
Trump has intensified his public attacks on Fed Chair Jerome Powell, blaming him for failing to act swiftly as economic risks mount. The president’s criticism has grown louder following recent data showing a 0.3% year-on-year GDP contraction in the first quarter and signs of weakening labor market momentum.
Despite mounting political pressure, analysts expect the Fed to keep the federal funds rate unchanged at 4.25%–4.5%, emphasizing a cautious approach as it weighs mixed economic indicators.
Inflation data released by the U.S. Labor Department showed the Consumer Price Index (CPI) declined 0.1% in March, the first monthly drop since May 2020, bringing annual inflation down to 2.4%, the lowest since September 2024. The Producer Price Index (PPI) also fell by 0.4% month-on-month in March, with a 12-month increase of 2.7%. The Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, remained flat monthly and eased to 2.6% annually, down from 3% in February.
While inflation cools, the economy showed signs of slowing. The trade deficit reached a record $162 billion in March, driven by a surge in imports that weighed on domestic output. Labor data painted a mixed picture. Non-farm payrolls rose by 177,000 in April, slightly above expectations, but private-sector hiring disappointed, rising just 62,000. The unemployment rate held steady at 4.2%, while initial jobless claims rose to 241,000, the highest in nine weeks.
In response to these developments, Trump ramped up his criticism of Powell. On April 7, he wrote on social media: “Now is a PERFECT time to cut rates,” accusing Powell of being “always late.” On April 17, he added: “Jerome Powell of the Fed, who is always TOO LATE AND WRONG… issued a report which was another, and typical, complete ‘mess!’” Days later, he claimed Powell’s actions could trigger a deeper slowdown.
Although markets were rattled by the escalating tension, Trump softened his tone on April 23, denying any plans to remove Powell despite calling him a “major loser” earlier. Nevertheless, he renewed calls for rate cuts following the release of April’s labor data.
The Federal Reserve, meanwhile, has signaled that while inflation is moving toward its 2% target, the labor market’s underlying strength and geopolitical uncertainties argue for caution. The central bank’s statement on Wednesday is expected to acknowledge recent progress on inflation but stop short of signaling any imminent rate cuts.
Kremlin spokesperson Dmitry Peskov has announced the upcoming release of a documentary film about Russian President Vladimir Putin.
ChatGPT has rapidly emerged as one of the most influential artificial intelligence tools, transforming how we interact with technology through natural language.
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
New Tesla registrations in Denmark collapsed 67 % in April to 180 vehicles, industry data showed Thursday, underscoring a sharp demand drop for the EV maker in one of its once-strong European markets.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
A website affiliated with GlobalX, the airline central to President Donald Trump’s offshore deportation campaign, was defaced by hackers on Monday, displaying a message from a group claiming to act under the name “Anonymous.”
On April 28, 2025, Spain experienced one of the most severe electrical failures in modern European history, with effects cascading across the Iberian Peninsula.
Peru has ordered a 30-day suspension of mining activities in the northern district of Pataz, following the kidnapping and killing of 13 gold mine workers by illegal mining gangs, President Dina Boluarte announced on Monday.
A security breach has emerged in the ongoing U.S. government Signal chat scandal, as a cloned version of the Signal app used by Trump administration officials was reportedly hacked in less than 30 minutes, raising further concerns about the handling of sensitive military information.
U.S. President Donald Trump announced on Monday that the United States would assist civilians in Gaza in obtaining food, as Israel’s aid blockade on the territory enters its 64th day.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment