Jerome Powell, chairman of the American Federal Reserve, during the Chicago Economic Economy Event in Chicago, Illinois, USA, Wednesday, April 16, 2025.
Jamie Kelter Davis Bloomberg Getty images
President Donald Trump On Monday, he raised his campaign for pressure Federal reserve Chairman Jerome Powellcalling him the “main loser” and warning that US economy It can slow down, unless interest rates are immediately reduced.
“Preliminary cut” in relation to interest rates is by many, “wrote Trump Social truth.
Trump claimed that there is currently no “inflation”, and the costs of energy and “most other” things “are falling.
“Because these costs are so nice down, what I predicted will do it, it can hardly be inflation, but it may be a slowdown in the economy, unless you are too late, the main loser, reduces interest rates,” wrote Trump.
The last Salvo Trump against Powell – whom he appointed during his first administration – came as a president and his team study whether they can legally release the leader of the central bank before his term expires in May 2026.
Powell firmly stated that the president could not remove him in accordance with the law.
Any attempts to release Trump Powell would probably cause steep sales on capital markets in the USA, vice president of Evercore ISI Krishna Guha CNBC said on Monday.
“If you start asking questions about the independence of the federal reserve, you raise the bar so that the federal reserve can cuts. If you actually tried to remove the chairman of the federal reserve, I think you will see a serious response in markets with higher yields, lower dollars and shares sell,” said Guha.Squawk box. “
“I can't believe that this is how the administration is trying,” said Guha.
The stock market, already returned from increased uncertainty and other fears arising from the broadly extensive Trump administration tariff plans, sank on Monday morning. The industrial average Dow Jones fell by 750 points, which is almost 2% inheritance, during the first hour of trade, while Nasdaq dropped by 2.6%.
Meanwhile, an American dollar fell to the lowest level From 2022, the resignation in global markets meant that investors are gathering on safe assets such as goldwhich reached a record price on Monday, while the reference point 10 years of treasury performance He crept.
Trump's recent attacks took place last week in the suggestion of the Central Bank leader that the president's trade war would limit growth and can fuel inflation.
The tariffs “will probably go away from our goals … probably for balance this year,” said Powell at the Chicago Economic Club.
Powell also ceased to suggest that interest rate discounts were on the horizon.
“For now, we are able to wait for greater clarity before considering any adaptations to our political position,” he said.
– – Alex Harring from CNBC contributed to this report.