Trump Slams Fed Chair Powell Over Tariff Inflation Warning
Donald Trump has launched a fresh attack on Federal Reserve Chair Jerome Powell following warnings that the former president’s tariffs could fuel inflation.
Trump, who appointed Powell during his first term, said his departure “cannot come fast enough,” criticising the Fed chairman for being “too late and wrong” on interest rate decisions. He called on the U.S. central bank to cut borrowing costs, as markets anticipate the European Central Bank (ECB) will do later today.
Powell had cautioned during remarks to the Economic Club of Chicago on Wednesday night that tariffs imposed by the U.S. administration were likely to drive inflation higher, adding that the public would ultimately shoulder some of the cost burden.
In a post on Truth Social, Trump dismissed Powell’s comments and recent economic assessments, writing: “Oil prices are down, groceries (even eggs!) are down, and the USA is getting rich on tariffs. Too Late should have lowered interest rates, like the ECB, long ago—but he should certainly lower them now. Powell’s termination cannot come fast enough!”
The clash comes amid growing economic and political tensions surrounding trade policy and the direction of U.S. monetary policy heading into the election season.
Amanda Wilcox, an economist at UBS, offered a summary of Chair Powell’s remarks to clients:
“Chair Powell explicitly acknowledged the downside risks tariffs pose to the economic outlook, noting that the scale of the announced increases is ‘significantly larger than anticipated.’ He warned that the economic impact would likely mirror this, bringing about both higher inflation and slower growth.
He emphasised the Fed’s commitment to managing inflation, stating: ‘Our role is to ensure that this results in a one-time price adjustment, rather than triggering a sustained inflationary cycle.’”
