Trump Slams Powell Over Delayed Rate Cuts as Markets Watch Fed’s Next Move
Former President Renews Attacks on Fed Chair Amid Global Economic Shifts
In a dramatic return to economic commentary, former U.S. President Donald Trump has reignited his long-standing feud with Federal Reserve Chair Jerome Powell, this time accusing Powell of dragging his feet on interest rate cuts just as the global monetary environment begins to shift.
Trump’s remarks, made on Truth Social on April 17, came on the heels of the European Central Bank’s decision to cut interest rates, while the U.S. Federal Reserve continues its cautious stance.
“Too Late Powell has failed to act appropriately,” Trump wrote, adding, “Powell’s termination cannot come fast enough!”
Trump Targets Fed Leadership, Calls for Change
The former president’s statements not only criticized Powell’s policy approach but also called for his removal, intensifying political pressure on the central bank’s independence — a principle long regarded as untouchable in U.S. economic governance.
Florida Senator Rick Scott backed Trump’s call, stating, “It’s time for new leadership at the Federal Reserve.”
In contrast, Powell, speaking just one day earlier at the Economic Club of Chicago, emphasized that the Fed’s independence is “a matter of law” and reaffirmed his commitment to serve out his full term, which runs until May 2026.
Global Rate Cuts Spotlight Powell’s ‘Wait-and-See’ Stance
The criticism comes amid growing international momentum for monetary easing. As inflation softens and market volatility climbs, traders and economists alike are pressing for clarity on the Fed’s next steps.
While central banks in Europe and Asia are beginning to ease, the Federal Reserve has stuck with a more cautious approach, citing uncertainty around tariffs and inflation data.
A real-time inflation tracker called “Truflation” shows price pressures cooling faster than official data suggests, further adding fuel to the debate over whether Powell is falling behind the curve.
Crypto Markets and Risk Assets Keep Eyes on the Fed
As always, the Fed’s decisions ripple far beyond traditional finance. Since the pandemic, crypto markets have become closely tied to U.S. dollar liquidity, and monetary policy shifts now play a key role in Bitcoin price action.
A 2024 study from Kingston University of London found that more than 65% of Bitcoin’s price movements are now driven by liquidity conditions, underscoring the Fed’s indirect influence over digital assets.
Crypto investors are watching the Fed closely, hoping for signs of easing that could boost sentiment across risk assets.
With the next Fed meeting in May, markets expect rates to hold steady. But rate cut expectations for June have surged, with futures markets now pricing in a 65% chance of easing.
Share This
