President Trump once again went after the Federal Reserve on Tuesday, saying at a rally in Michigan that “I have a Fed person who is not really doing a good job.”
It was an apparent reference to Fed chairman Jerome Powell, although he didn’t mention Powell by name with Trump saying “I want to be very nice and respectful to the Fed.”
“You are not supposed to criticize the Fed; you are supposed to let him do his own thing, but I know much more than he does about interest rates, believe me,” he added.
It was the latest sign that the president does not intend to let up on the central bank or its chairman or pushing for lower interest rates a week after saying he has “no intention” of firing the central bank boss.
Trump himself stoked speculation about Powell’s fate after Trump asserted on social media earlier this month that “Powell’s termination cannot come fast enough.”
The assurance he wouldn’t try to remove Powell helped calm investors worried that Trump was ready to upend the Fed’s leadership and directly challenge its independence.
It apparently was a step that was considered. White House economic adviser Kevin Hassett said that Trump and his team were in fact studying whether the Fed chair could be removed.
Trump’s attacks on Powell ramped up after Powell said in a speech earlier this month that the president’s aggressive slate of tariffs would lead to higher inflation and lower growth and that the Fed would likely hold rates steady for now.
Seemingly acknowledging that slower economic growth could be on the horizon, Trump, in an April 21 social media post, called for “pre-emptive rate cuts” and referred to Powell as a “major loser.”
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Many other Fed officials beyond Powell have also urged patience and caution before making any rate moves, given the many uncertainties ahead.
New readings on inflation and GDP are due out Wednesday morning, which will be closely studied ahead of the Fed’s next policy meeting on May 6-7.
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