Trump Criticizes Powell, Claims Long-Term Damage To U.S. Economy.

Trump Criticizes Powell, Claims Long-Term Damage To U.S. Economy.

In a series of recent social media posts, former U.S. President Donald Trump has once again targeted Federal Reserve Chairman Jerome Powell, accusing him of causing long-term economic damage. Trump's criticisms, which have intensified over the past few days, highlight his dissatisfaction with the Federal Reserve's interest rate policies.

On Friday, Trump published a lengthy post on Truth Social, where he referred to Powell as a "blockhead" and "Mr. Too Late." He argued that Powell's reluctance to cut interest rates is causing significant economic issues, including a potential economic recession. Trump suggested that lowering interest rates to 1% to 2% could save the U.S. up to $1 trillion a year [1].

Powell's term is set to end in May 2026, and Trump hinted that he might reconsider his position on removing Powell from his role. In his post, Trump also mentioned that he has candidates in mind to replace the Fed Chair and has even begun interviews with potential candidates [3].

The Federal Reserve decided to maintain the target range for the federal funds rate at 4.25% to 4.50% on Wednesday, marking the fourth consecutive decision to keep rates unchanged. This decision was met with criticism from Trump, who argued that the Fed should have cut interest rates by 250 basis points [1].

Economists have suggested that Trump's repeated calls for the Federal Reserve to cut interest rates may be more about shifting blame for an economic recession than attempting to directly influence the Fed's policies [1].

Separately, the White House has signaled flexibility with Trump's upcoming tariff deadlines. Press Secretary Karoline Leavitt mentioned that the July 8–9 dates for new, high import taxes are not set in stone and might be pushed back. This flexibility comes as the U.S. economy shrank at a 0.5% annual pace from January through March due to trade wars disrupting business [2].

References:
[1] https://www.metal.com/en/newscontent/103388219
[2] https://www.etnownews.com/economy/us-tariffs-donald-trump-to-extend-july-deadline-white-house-says-this-article-152161962?frmapp=yes
[3] https://en.bitcoinsistemi.com/fed-chairman-jerome-powell-seems-the-way-us-president-donald-trump-targeted-powell-called-him-stupid-again-ive-started-talks/