PULSE POINTS:
❓What Happened: President Donald J. Trump criticized Federal Reserve Chair Jerome Powell, calling for reduced interest rates amid claims of low inflation.
👥 Who’s Involved: President Trump and Jerome Powell.
📍 Where & When: On Truth Social, the morning of Monday, April 21.
💬 Key Quote: Trump remarked, “Powell has always been ‘Too Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”
⚠️ Impact: The U.S. economy has sent mixed signals that have left the Federal Reserve to adopt an overly cautious stance. However, recent indicators have suggested deflation could now be occurring, which may finally push Powell to reduce rates.
IN FULL:
President Donald J. Trump is continuing his criticism of Federal Reserve Chair Jerome Powell, urging for immediate cuts to interest rates. Trump reiterated his position on Truth Social on Monday, stating, without providing evidence, that “preemptive cuts” to rates are being advocated by many as the economy faces what he described as “virtually No Inflation.”
“‘Preemptive Cuts’ in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation,” Trump wrote, continuing: “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW. Europe has already ‘lowered’ seven times.”
“Powell has always been ‘Too Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?” the America First leader added.
President Trump has increased pressure on the Federal Reserve chairman in recent weeks. Last week, Trump suggested Powell’s removal as the head of the U.S. central bank could be imminent, writing on Truth Social that, “Powell’s termination cannot come fast enough!” However, according to U.S. Treasury Secretary Scott Bessent, Powell is likely to be replaced as Fed chair later this year, with the target date being “sometime in the fall.”
The Federal Reserve has been slow to reduce interest rates, fixating on concerns that inflation could accelerate. However, a Consumer Price Index (CPI) print from early April had SuperCore CPI—a key indicator monitored by the central bank—showing possibly deflation. A deflationary cycle is far more of an economic concern than reigniting inflation, and may suggest a lack of liquidity in the market, meaning an interest rate cut may need to occur, whether Powell is ready for rate reductions or not.
