Former President Trump has escalated pressure on Fed Chair Jerome Powell, blasting him on social media — labeling him a “major loser” and “stupid” — for not cutting interest rates more aggressively. The criticism comes amid Trump’s assertion that current inflation is low (“virtually No Inflation”) and his warning that the economy could slow without immediate rate relief.
Meanwhile, within the Federal Reserve, Governor Chris Waller (a Trump appointee) and other officials like Vice‑Chair Michelle Bowman have suggested a rate cut might be justified as early as the July meeting, citing steady inflation and a weakening labor market. Yet others, including Powell and Richmond Fed President Barkin, remain cautious, citing potential inflation risk from tariffs.
Despite Trump’s threats to fire Powell and install a more dovish successor, the Fed has held firm on its independence. Historical precedent and legal protections make any dismissal unlikely — and many warn that political interference could destabilize markets and undermine confidence.
